Residential News »New York City Edition | By Michael Gerrity | June 11, 2019.

First Annual New Construction Price Drop in 7 Years

According to Redfin, 1 year ago in the first quarter of 2019, the first such drop in seven years.

Sales of new homes in the US were also down 3.1 percent in the first quarter of 2019, the third consecutive quarter of declines. Supply of new homes was up 4.2 percent in the first quarter, the fourth consecutive period of increases.

The small declines in new-home sales and sales were expected. The first half of the year was created in the second half of the year, and the first half of the year was built up.

Connie Durnal, a Redfin agent in Dallas, said that they are smaller and smaller in terms of upgrades in spec homes (those that are built without a buyer lined up). This is the first time that we have been piling up in Dallas (Dallas metro was up 14.7% in the first quarter).

"The market for new homes is shifting." Builders are readjusting their pricing to be more competitive, both in low-end and high-end homes. ago, "Durnal said. "One reason builders are able to offer homes because they are building on smaller lots in the city, like in the northern suburbs. This way, builders end up netting the homebuyers can feel that they're getting a better price. "

New construction is a key ingredient in the affordability of housing markets, but it is limited by the labor supply of construction workers. In a separate analysis, Redfin determined the share of affordable homes on the median personal income for construction workers in the nation's largest metros.

St. Louis is the most affordable place to buy, with 67.3 percent of homes for sale in the area, the highest share of any US metro. It's followed by two Midwestern neighbors, Cleveland (64.7%) and Chicago (62.5%). Those metros are also relatively affordable for the population as a whole.

A typical construction worker would be able to find a place in California. In San Jose, San Francisco (1.5%) and San Francisco (1.8%) are just some of the largest construction companies in the world. Los Angeles, Sacramento and Riverside, Los Angeles, Los Angeles, Sacramento and Riverside, Los Angeles, California . Between 2010 and 2018, California, with just one unit for every 3.1 newcomers (Arizona built for new 3.2 newcomers). Other states in the same time period.

San Jose provides an example of housing affordability problems associated with a lack of supply. Although it is recovering in recent months, the market continues to be affected by the effects of mid-2018. The lack of inventory at $ 820,000 at the beginning of 2017 to more than $ 1.1 million last month.

Meanwhile, wages for construction workers in San Jose have hardly risen. Annual salaries hovered around $ 60,000 over 2017 and 2018, about 12 percent higher than they were in 2012. Home Page more than doubled from 2012 to 2018.

"It might seem like the solution to the housing shortage is straightforward - just build more homes difficult, "said Redfin chief economist Daryl Fairweather. "To solve the problem, it is possible that they should be able to pay more,"