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Housing Dimensions Blog

Written by Rick Palacios Jr. and Ali Wolf

Home builders captured market share in 2012 for the first time since 2005, accounting for just over 7% of all home sales, and we believe even more market share is in the cards for 2013. Over the last 20 years, new homes have constituted 13% of total home sales. At +20% y/y, the new home market more than doubled the +9% y/y growth achieved in the resale market last year. As shown below, this recovery is playing out very differently from that of the 2001-2005 upturn, where new and resale sales growth moved almost in lockstep.

New vs. Existing Home Sales
(Annual % Change)

Rick Palacios Jr.'s picture

Homebuilders Finally Reclaiming Market Share

September 6, 2012

After six long years, homebuilders are back in business - literally. New home sales are up 25% year-over-year and 36% from the 2011 bottom. As shown in the chart below, homebuilders are also finally reclaiming market share.