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# Homebuilders Slammed As Sales Fall, Costs Soar
- URL: https://www.yardeniquicktakes.com/homebuilders-slammed-as-sales-fall-costs-soar/
- Published: 2022-05-25T00:13:00.000Z
- Updated: 2022-05-25T00:58:51.000Z
- Author: Ed Yardeni
- Tags: Housing Market, Inflation

There's lots of stagflation in the new home market. During April, new home sales (registered when contracts are signed) dropped 16.6% m/m and the months' supply of new homes jumped to 9.0 from 6.9 in March. Here's more:  
  
(1) The m/m sales declines were widespread in the South (-19.8%), Midwest (-15.1), West (-13.8), and Northeast (-5.9).  
  
(2) The median price of a new home rose 19.6% y/y to a record $450,600\. It is up 45.3% over the past 24 months, while the average price is up 58.3% over the same period!

(3) Those incredible price increases are partly attributable to fewer sales of lower-priced homes. In addition, the final demand PPI for construction was up almost 20% y/y during April.  
  
(4) The Fed has increased the federal funds rate by only 75bps so far this year, but a combination of soaring home prices and rapidly rising mortgage rates have slammed the affordability of buying a home.

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2022/05/5.24.22-QT-1.jpg)

![](https://storage.ghost.io/c/16/ef/16efc0dd-240f-4f5e-9e01-d619d6fd4fd1/content/images/2022/05/5.24.22-QT-2.jpg)