After several months of significant growth in 2021, housing activity in June is showing initial signs of potentially cooling off. Although housing activity continued to increase across major indicators, the pace of growth has decelerated from the prior month.
“The housing supply is declining at a slower pace and home price increases have also slowed—a positive sign for the stability and health of the housing stock,” says Jonathan Kanarek, managing director of BuildFax, a Verisk business. “In June, mortgage applications dropped to their lowest levels since the emergence of COVID-19. It is likely that inflation, rising mortgage rates, and elevated home prices will continue to lessen homebuyer demand and market competition in the coming months.”
In new construction, single-family housing authorizations significantly increased year over year, but declined, month over month, for the third consecutive month. Similarly, maintenance and remodeling activity trended up, year over year, but dropped, month over month, from May. The deceleration of housing activity across new and existing construction indicates a slowdown may be imminent.
New and Existing Housing Supply Activity, June 2021
- Single-family housing authorizations increased 20.95%, year over year.
- Existing housing maintenance volume increased 10.19%, year over year.
- Existing housing remodel volume increased 12.31%, year over year.
Download the report for a full view of U.S. housing market activity in June.