New home sales dropped back in September, the first contraction since the height of the pandemic in April. Pent-up demand from the spring is now dissipating and tight inventory, particularly of completed homes, meant buyers were unable to find suitable properties. Supply will not improve overnight, and we therefore expect sales will drop further over the remainder of the year to around 950,000 annualised.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services