With people working from home, low interest rates, healthy home equity, a robust stock market, and favorable demographics, Zonda’s New Home Pending Sales Index posted a 168.8 in November, up 0.7% month over month and 44.9% year over year.
“Another month brings another great report on new-home sales,” says Ali Wolf, chief economist at Zonda. “Buyers remain enthusiastic about purchasing a home thanks to low interest rates and the work-from-home economy. Builders are equally enthusiastic with one main gripe: They cannot build homes quick enough.”
Sales in 20 of 20 select markets rose year over year, led by Jacksonville, Florida; Raleigh, North Carolina; and Atlanta, with year-over-year gains at 91.2%, 83.9%, and 63.7%, respectively. Of the top 10 markets, six are in the Southeast. The region was a migration magnet pre-pandemic, and the trend has only grown, according to the report.
Surprisingly, new-home sales have turned positive in Los Angeles; Orlando, Florida; San Francisco; Washington, D.C.; and Houston, some of the metros that are the least recovered in terms of employment.
“Builders in some markets are starting to see modest signs of a seasonal slowdown from decade highs, but demand is still far stronger than the levels seen last year,” continues Wolf. “Looking ahead, 2021 is expected to be another good year for housing with supply as the limiting factor.”
