Sales Of New-Construction Homes Are Back To Pre-Pandemic Levels – NMP
Industry News

Sales Of New-Construction Homes Are Back To Pre-Pandemic Levels

Aug 25, 2020
New home being built.
A headshot of Navi Persaud
Director of Events

A report from Redfin shows sales of newly-built homes climbed 10.1% year-over-year in July 2020, which brings the number of new-construction sales back to pre-pandemic levels. Sales of existing homes also increased by 5.3% in the same month, according to the report.
 
The report also revealed that the supply of new construction homes for sale dipped 28.4%, the largest drop since 2013, according to Redfin's data. The company also points out that this was not as severe as the 37% decline in the inventory of existing homes last month. 
 
"The shortage of both new and existing homes is intensifying across America right now as record-low mortgage rates drive more demand, but the shortage of new homes is less severe due to a surge in construction right before the pandemic," said Redfin senior economist Sheharyar Bokhari. "As a result, sales of new homes are growing faster than sales of existing homes. Sales of new homes are also on the rise because the coronavirus pandemic is fueling interest in the suburbs—where there tends to be more space to build new homes."
 
Redfin stated that the number of newly-built homes on the market could continue to grow as residential construction projects in the U.S. jumped 23.4% year-over-year in July. According to the report, homebuilders are facing a lumber shortage that could impact whether or not new-construction continues to increase. 
 
About the author
A headshot of Navi Persaud
Director of Events
Navi Persaud is Director of Events at NMP.
Link copied
Published
Aug 25, 2020
Get the NMP Daily
Analysis and Data
Foreclosure Inquiries Reach Highest Level Since 2020

LegalShield points to rising homeowner distress following the expiration of pandemic-era FHA relief programs

Foreclosure inquiries rose for the third straight quarter to their highest level since March 2020, according to LegalShield. The company tracks homeowners seeking legal assistance before a foreclosure filing, acting as an early warning signal of a coming surge.Historically, ...

Continue reading
Regulation and Compliance
Illinois Changes Property Tax Foreclosure Process To Return Surplus Equity

Borrowers can save remaining home equity after delinquent property taxes and fees are paid

Illinois has changed its property tax foreclosure system to require that surplus equity from a property sale be returned to the former owner after delinquent taxes, interest and fees are paid.Gov. JB Pritzker signed the legislation into law Friday, July 10. The measure was p...

Continue reading
Renew your NMLS License — for free.

Enjoy access to a free NMLS renewal class when you attend an in-person event.

Find an event
More from
Industry News
First Major Housing Reform In Decades Becomes Law Without Trump's Signature

Bipartisan ROAD to Housing Act advances supply, construction, and mortgage reforms despite White House protest

Industry News
Jul 10, 2026
Mortgage Star Conference Honors Women Shaping The Future Of Mortgage Leadership

MWLC honors leaders driving innovation, mentorship, and growth across the mortgage industry

Industry News
Jul 09, 2026
June Jobs Report Improves Mortgage Rate Outlook

Slower hiring strengthens bonds and eases concerns over additional Fed tightening

Industry News
Jul 02, 2026
NEXA Founder Mike Kortas Launches evoLend To Help Originators Retain Borrowers

New Fannie Mae-, Freddie Mac- and Ginnie Mae-approved mortgage servicer aims to keep originators connected to borrowers through servicing data, payoff visibility and retention tools

Industry News
Jul 02, 2026
President Trump Cancels 21st Century ROAD To Housing Act

Trump cancels signing the bipartisan housing bill, leaving affordability package in limbo

Industry News
Jun 24, 2026
Commercial, Multifamily Mortgage Debt Tops $5 Trillion In Q1

MBA says outstanding debt grew by $26.3 billion in the first quarter, led by multifamily lending and increased holdings from banks, agencies, and life insurers

Industry News
Jun 18, 2026