The number of homes sold in March dove 22% from March of last year. But it's hard to buy a house if there aren't many available. And there aren't.
Data: FactSet, National Association of Realtors; Note: Includes single-family homes, townhomes, condos and co-ops; Chart: Alice Feng/AxiosThe mismatch between housing supply and demand — and the surging prices that resulted — is a lingering side effect of the COVID crisis on the economy.Sales of existing homes, the vast majority of the houses sold in the U.S., dropped 2.
The high cost of taking out a new mortgage has kept many homeowners from selling the homes that they previously financed at rock-bottom rates. "What still hasn't changed is the amount of existing home inventory out there. That remains very limited," Jessica Hansen, VP of investor relations at homebuilder D.R. Horton, said on a Thursday earnings call.
Turns out that's great for builders: D.R. Horton's Q1 profits were much better than analysts expected, helping to send its shares up nearly 6% on Thursday. If homebuyers are set on getting a house, "new construction is where they can find it right now," Hansen said.
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