Unsold new homes hit record high in US South due to high supply

From Yahoo Finance: 2024-07-27 17:02:44

– There is a historically high number of new homes for sale in the US South, specifically in Florida and Texas. The 293,000 newly built houses on the market in June surpassed the previous high set in 2006. This is due to high supply in the South, contrasting with other regions facing tight supply due to high borrowing costs.

– The increase in inventory in Florida and Texas is partly attributed to the pandemic-driven migration, which is now waning as people move back to their original locations. This has led to a glut of homes, with existing-home inventory jumping 48.7% year over year in June in the South.

– In Texas, investors are selling properties at a higher rate than the national average, driven by significant price appreciation and softening rental markets. In Florida, condo owners are facing added costs following the Surfside condo collapse, leading to an increase in inventory levels for townhomes and condos.



Read more at Yahoo Finance: Unsold new homes just hit an all-time high in the US South. Here’s why.