Home Sales PLUNGE by 30% as Home Builders ABANDON Projects..?
Home sales plunge across America: Home Sales CRASHED in April by 30%. This is yet another 2022 Housing Crash and Recession WARNING. Home Builders are beginning to abandon projects (and pull fewer permits) as a result.
Why home sales plunge in April 2022
US Census Bureau Data showed that Homebuyers purchased 30% fewer Newly Built Homes in April 2022 compared to April 2021. That’s one of the largest YoY declines on record and is further evidence that the Housing Crash has started.
Homebuyers dropped out of the market for new homes due to 1) increasing mortgage rates, 2) inflation, and 3) pessimism regarding the US Housing Market. These headwinds are combining to make life difficult for Home Builders, who are building a new record amount of single-family homes in 2022.
Home sales by region
The declines in Home Sales were biggest in the South – across Housing Markets such as Texas, Florida, and Tennessee. This region saw a 37% decline, compared to 25% in the Midwest and 12% in the West. Interestingly – Northeast Markets increased sales by 17%.
A historical recession predictor
Perhaps most concerning – the decline in Home Sales to go along with peak in Home Construction is a historical Recession predictor. Nearly every time in the last 50 Years that Home Building ran up to a peak, a Recession followed in the next two years.
Key takeaways
- Home buyers purchased 30% fewer newly built homes in April 2022 than in April 2021.
- The South saw a 37% decline, the Midwest 25% and the West 12%, while Northeast markets increased sales by 17%.
- Nearly every time in the last 50 years that home building ran up to a peak, a recession followed in the next two years.
Related reading on Creative Geniusess
- Formerly Hot Housing Market Cooling Off: the housing market cools as mortgage rates climb.
- Housing prices are going to soften, says Redfin CEO Glenn Kelman: rising mortgage rates and an outlook for housing.
- iBuyers lost millions in the Housing Market: Zillow losses on homes in the Valley.
The US Census Bureau publishes new residential sales data.
