Following weather-related disruption in February, new home sales jumped in March to close to a 15-year high. A gradual rise in mortgage interest rates this year will weigh on demand to some extent, but the key constraint on sales will be a lack of inventory. Booming construction costs are leading to delays to housing starts, and that will act to bring new home sales down to around 850,000 annualised by end-2021.
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 gain:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services