Chat
Chat with Sales Hours: Monday-Friday 8:30 a.m. - 4:30 p.m. (CST)
Contact Sales
Call Sales Toll-Free 1-(866) 774-3282 Hours: Monday-Friday 7 a.m. - 5 p.m. (CST)
Product Login
Product Log-in
Product Support
Product Support
Email Sales
Contact Sales
After Hours
  • Support
  • Sign In Sign In
  • AUS NZ UK
CoreLogic - Home
  • Solutions
    view solutions by:

    Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence

    Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker

    Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax

    Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather Verification
    • Claims Automation
    • Restoration
    • INTRCONNECT

    Mortgage Lenders

    • Origination

    Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring

    Mortgage Appraisers

    • Appraisal

    Real Estate Agents & Brokers

    • Agents & Brokers

    Real Estate MLS

    • Multiple Listing Enterprises

    Commercial Real Estate Owners

    • Commercial Property Tax

    Marketing Departments

    • Property Data

    Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management

    Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification

    Construction Contractors

    • Restoration Contractors

    General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
  • Resources

    Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index

    Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles

    More Resources

    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes
  • Company
    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Search
CoreLogic - Home
  • Solutions
  • Resources
  • Company

    • About
    • Leadership
    • Newsroom
    • Contact
    • Careers
  • Accounts

    • Products Sign-in
  • Contact

    • Sales Contact
    • Product Support
  • Regions

    • Australia
    • New Zealand
    • United Kingdom
  • Social

    • Facebook
    • Instagram
    • Linkedin
    • Twitter
    • Youtube
Solutions
VIEW BY:
  • Data Solutions

    • Lead Generation
    • Property Data
    • Location Intelligence
  • Real Estate

    • Multiple Listing Enterprise
    • Agent & Broker
  • Mortgage

    • Origination
    • Servicing
    • Appraisal
    • Commercial Property Tax
  • Insurance

    • Hazard Risk
    • Catastrophe Risk Management
    • Risk Evaluation
    • Underwriting Automation
    • Weather Verification
    • Claims Automation
    • Restoration
    • INTRCONNECT
  • Mortgage Lenders

    • Origination
  • Mortgage Servicers

    • Residential Property Tax
    • Default & Loss Mitigation
    • Portfolio Insight & Monitoring
  • Mortgage Appraisers

    • Appraisal
  • Real Estate Agents & Brokers

    • Agents & Brokers
  • Real Estate MLS

    • Multiple Listing Enterprises
  • Commercial Real Estate Owners

    • Commercial Property Tax
  • Marketing Departments

    • Property Data
  • Insurance Underwriters

    • Risk Evaluation
    • Underwriting Automation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Risk Managers

    • Risk Evaluation
    • Hazard Risk
    • Catastrophe Risk Management
  • Insurance Claims

    • Claims Automation
    • Restoration Contractors
    • Weather Verification
  • Construction Contractors

    • Restoration Contractors
  • General

    • Location Intelligence
    • Lead Generation
    • Data Solutions
Resources
  • Reports

    • Climate Change
    • Construction Cost Update
    • Construction Insights
    • Home Price Insights
    • Homeowner Equity Insights
    • Loan Performance Insight
    • Mortgage Fraud
    • Property Tax Delinquency
    • Single-Family Rent Index
  • Insight Blogs

    • Hazard HQ
    • Office of Chief Economist
    • Affordable Housing
    • Homebuying
    • Insurance
    • Other Articles
  • More Resources

    • Case Studies
    • White Papers
    • Podcasts
    • Quick Takes

Home / Intelligence / New Homes Sales Continue Steady Drop in 2022

ABOUT THE AUTHOR
Thomas Malone
Thomas Malone
Professional, Economist
View Profile
  • August 17, 2022

New Homes Sales Continue Steady Drop in 2022

Reduced demand shows in sales but is not reflected in prices

New homes have experienced the same record price appreciation that the overall market has seen in the past two years. In June, the annual appreciation for new home prices was 17%, which is only slightly below 20% for existing homes1. To develop a more complete picture of the overall market, we must also look at the number of sales — and those tell a different tale.

Figure 1: New and Existing Home Price Appreciation, Jan 2012-Jun 2022

Source: CoreLogic
© 2022 CoreLogic,Inc., All rights reserved.

Nationally, new home sales have been down over 13% in every month of 2022. To put this in perspective, in May 2020, at the height of the shutdowns, the decline was only 10%. The current decline is likely due to the reduced demand for homes caused by interest rate increases2.

Home sales follow a volume cycle rather than a price cycle, and this phenomenon is exaggerated for new homes. When demand dries up, developers prefer to delay projects and wait out the downturn. Homes that developers do sell during these periods are the ones for which they can still command a high price. Since few people are willing to pay the same price with higher interest rates, prices remain the same and sales go down.

Figure 2: New and Existing Home Sales, Jan 2012-Jun 2022

Source: CoreLogic
© 2022 CoreLogic,Inc., All rights reserved.

The top markets for new home sales are primarily located in the South, with Dallas and Houston leading the way. Out of the top 10 markets, the only geographic outlier is New York City since it constructs more new condos than other markets. However, if we consider only single-family homes, this market would fall toward the bottom of the ranking for new home sales.

Figure 3: New Home Sales Top 10, June 2021-May 2022

Source: CoreLogic
© 2022 CoreLogic,Inc., All rights reserved.

This drop in sales is widespread. The number of new home sales is down in nine of the top 10 markets, with declines ranging from just under 10% in Phoenix to over 20% in Houston. Again, the exception is New York, but this is due to a bounce-back effect from the recent pandemic-induced weakness in the city’s condo market.

Figure 4: Year-Over-Year Growth in New Home Sales, June 2021-May 2022

Source: CoreLogic
© 2022 CoreLogic,Inc., All rights reserved.

Overall, the conditions seem set for new home sales volumes to remain subdued. As a result, while price drops are indeed possible, precedent suggests that prices will simply stall while developers wait for demand to catch up. Now that the recent record price increases are no longer offset by low mortgage rates, this may take some time.

[1] Existing home price appreciation uses the CoreLogic HPI https://www.corelogic.com/intelligence/u-s-home-price-insights/. New home appreciation is author’s own calculation using a hedonic methodology detailed in https://www.corelogic.com/intelligence/which-increased-more-new-or-existing-home-prices/.

[2] https://www.corelogic.com/intelligence/jump-in-mortgage-rates-and-home-prices-erode-buyer-affordability/.

© 2022 CoreLogic,Inc., All rights reserved.
  • Category: Intelligence, OCE Monthly, Podcast/Vodcast
  • Tags: Construction, Housing Market, Market Trends
ABOUT THE AUTHOR
Thomas Malone
Thomas Malone
Professional, Economist
View Profile

Related Posts

Turkey Syria Earthquake
Hazard HQ

M7.5 – 7.8 Earthquake Sequence Near Turkey-Syria Border

A sequence of powerful earthquakes struck near the Turkey-Syria border, with three of the earthquakes registering magnitudes exceeding 6.5.

February 7, 2023
Dec2022HPIPromo
Blogs

U.S. Home Price Insights – February 2023

U.S. home prices continued to slow on a year-over-year basis in December 2022, moving down to 6.9%.

February 7, 2023
Jan23CSIPromo
Home Price Insights

US CoreLogic S&P Case-Shiller Index Growth Rate Cools Further in November, Up by 7.7%

Annual U.S. home price growth continued to relax in November for the seventh straight month.

January 31, 2023

About Corelogic

  • Newsroom
  • Leadership
  • Careers
  • Ethics & Compliance

Accounts

  • Products Sign-in

Contact

  • Sales Contact
  • Product Support

Regions

  • CoreLogic Australia
  • CoreLogic New Zealand
  • CoreLogic UK

Follow & Connect

  • Facebook
  • Instagram
  • Linkedin
  • Twitter
  • YouTube
© 2023 CoreLogic. All rights reserved.
  • Legal
  • Privacy Policy
  • CCPA
  • Security
  • Sitemap
  • Accessibility
  • Legal
  • Privacy Policy
  • CCPA
  • Security
  • Sitemap
  • Accessibility