Nationwide’s David Berson on the latest home sales report
Today’s HousingWire Daily features an interview with Nationwide Mutual Senior Vice President and Chief Economist David Berson. In this episode, Berson reviews the latest home sales report from the U.S Census Bureau and the U.S. Department of Housing and Urban Development and examines the current state of the housing market.
Additionally, Berson discusses how supply constraints and climbing home prices have impacted potential homebuyers and what he believes needs to happen for the housing market to catch up with homebuyer demand.
For some background on the interview, here’s a brief summary of HousingWire’s coverage on the latest home sales report:
Record-high building material prices and a continued lack of labor brought down new home sales in April to a seasonally adjusted annual rate of 863,000 ― roughly 5.9% lower than the revised March rate, according to a joint analysis from the U.S. Census Bureau and the Department of Housing and Urban Development.
While homebuilders grapple with supply constraints, demand has yet to be met. April’s new home sales are nearly double that of April 2020’s estimate of 582,000.
“New home sales volume remains well above pre-pandemic levels, but it’s become very clear that the high and volatile price of lumber and other key building materials is introducing challenges to the new home building and sale process,” said Matthew Speakman, economist at Zillow.
In order to account for uncertain prices and availability of materials, homebuilders are holding off on making homes available until they are further along in the construction process. This is not due to a lack of demand; quite the opposite, Speakman noted. Homes are selling about as quickly as ever, and many builders say sales could be higher if material-related constraints weren’t there.
HousingWire Daily examines the most compelling articles reported across HW Media. Each afternoon, we provide our listeners with a deeper look into the stories coming across our newsrooms that are helping Move Markets Forward. Hosted by the HW team and produced by Alcynna Lloyd and Victoria Jones.
HousingWire articles related to this episode:
- Building material prices take their toll on new home sales
- Case-Shiller: Largest home price increase in 15 years
Below is the transcription of the interview. These transcriptions, powered by Speechpad, have been lightly edited and may contain small errors from reproduction: