If you’ve looked at real estate listings lately, you’ve probably noticed that many homes are brand new. In fact, new homes now make up a record share of homes for sale, according to a new report.
While homebuilding has been increasing lately, that’s not the main reason for the phenomenon, real estate company Redfin said in the report this week. Instead, it’s because buyers are picking listings clean of pre-owned homes (which tend to be cheaper). There’s intense demand for those existing houses due to work-from-home trends, and very few for sale at any given time. As a result, as the chart below shows, the share of listed homes that are newly constructed rose to 34.1% in December, the highest it’s ever been in data going back to 2000.
“A lot of pre-owned homes are being listed, but they are just selling off so quickly–typically in a matter of days–while new homes take longer to sell,” said Redfin Economist Sheharyar Bokhari in a statement. “So as a homebuyer, you’re increasingly likely to see new builds when you look up homes for sale in your target area.”
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