Sales of new homes in U.S. show steady growth
2022.12.23 11:12
Sales of new homes in U.S. show steady growth
Budrigannews.com – In November, sales of new single-family homes in the United States increased for a second month in a row, likely as consumers took advantage of lower mortgage rates and incentives offered by desperate builders. However, the overall housing market remains weak.
The Commerce Department reported on Friday that sales of new homes increased by 5.8% to 640,000 units at a seasonally adjusted annual rate. The previously reported 632,000 units sold in October were revised down to 605,000.
Sales increased in the West and Midwest, but decreased in the Northeast and the South with its high population density.
Reuters polled economists and predicted that new home sales, which make up a small portion of home sales in the United States, would fall to 600,000 units in November. Year-over-year, sales were down 15.3%.
The Public Relationship of Home Manufacturers detailed for the current week that 62% of developers in December were utilizing motivations to charm purchasers, including giving home loan rate purchase downs, addressing focuses for purchasers and offering cost decreases.
Housing demand has decreased as a result of the Federal Reserve’s most rapid cycle of interest rate hikes since the 1980s, which was intended to reduce inflation.
This week, reports indicated that single-family building sentiment remained negative for a record 12-month stretch in December.
In November, single-family housing starts and building permits fell to their lowest levels in two and a half years, and sales of previously owned homes experienced their tenth monthly decline, the longest such streak since 1999.
After soaring above 7% a few months ago, the average rate on a 30-year fixed-rate mortgage reached its highest level since 2002, dropping this week to 6.27 percent. However, according to Freddie Mac (OTC:) data, the rate is more than twice as high as it was this time last year. showed.
In November, the median price of a new home was $471,200, a 9.5% increase from a year earlier. At the end of October, 461,000 new homes were on the market, down from 469,000 in October. A total of 23.2 percent of the inventory was made up of homes that had not yet been built, while construction homes made up 62.9%.
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The long-term average of 27% was well below the 13.9% of inventory that was made up of completed homes. It would take 8.6 months to sell all of the houses on the market at the pace of November, down from 9.3 months in October.
