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Thursday, June 23, 2022

New Home Sales and Cancellations

 Today, in the Calculated Risk Real Estate Newsletter: New Home Sales and Cancellations


Brief excerpt:

Here is a table of selected public builders and the currently reported cancellation rate (I’m still gathering data). There is some seasonality to cancellation rates. The only builder that reported a sharp increase recently was KB Home comparing the three months ended May 31, 2022, with the three months ended May 31, 2021.
“The cancellation rate as a percentage of gross orders was 17%, compared to 9%.”
However, as KB Home noted on their conference call yesterday, a large portion of the increase in cancellations were on “unstarted homes”.
...
Homebuider Cancellation RatesCurrently cancellation rates are below normal for the home builders. As an example, Toll Brothers recently announced a cancellation rate of 3.8%, down from 4.3% the previous quarter, and well below their historical rate of 7%. During the housing bust, Toll Brothers cancellation rates peaked close to 40%.


https://www.calculatedriskblog.com/2022/06/new-home-sales-and-cancellations.html

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