Houses for sale discovery bay9/4/2023 ![]() ![]() Typically the ratio of existing homes to new homes is 5 to 1, but lately it has been closer to 2 to 1, according to the National Association of Realtors. That is a 7.4-month supply at the current sales rate.īy comparison, the inventory of existing homes for sale at the end of June was only a little over 1 million homes. The seasonally adjusted inventory of new homes for sale at the end of June was 432,000. “Especially if mortgage rates decline and more resale inventory hits the market,” Mangold added. ![]() New home sales have been strengthened over the past year due to rising mortgage rates that have contributed to a lack of existing home inventory, but the possibility of a recession later in the year may impact this trajectory, she said. “Companies continue to adjust their expectations around hybrid and in-office work, which is likely to continue to impact housing decisions for years to come.” “Buyers continue to seek additional space for growing families and work-from-home arrangements,” Mangold said. Sales were particularly strong in the South and the Northeast. Here's why home prices stayed high in May In this aerial view, homes sit on lots in a neighborhood on Apin Cutler Bay, Florida. “Buyer demand remains strong and a limited inventory of resales continues to bolster the new home market,” she said. New home sales boosted by low inventory of existing homesĪlthough sales were down from May, the trajectory of new home sales is generally positive, said Kelly Mangold of RCLCO Real Estate Consulting. The median price for a new home dropped to $415,400 in June, down from $416,300 the previous month. In some good news for buyers, prices of new homes dropped from May, the report showed. This increase in mortgage rates cooled mortgage applications. Mortgage rates reached as high as 6.79% at the beginning of June, according to Freddie Mac, as uncertainty moved through the financial industry due to the debt ceiling standoff. ![]() Sales were higher than last June’s estimated rate of 563,000. Sales of new single‐family houses were at a seasonally adjusted annual rate of 697,000, down from a revised 715,000 in May. Sales of existing homes have been down for the past few months, while new home sales have been rising. Homeowners with ultra-low mortgage rates are reluctant to sell and buy another home at a much higher mortgage rate. June’s month-over-month pullback is further evidence that while the new construction market is being boosted by exceptionally low inventory, affordability concerns remain. Sales of newly constructed homes were down 2.5% in June from a revised surge of 6.6% in May, although they were up 23.8% from a year ago, according to a joint report from the US Department of Housing and Urban Development and the Census Bureau. New home sales dropped in June from the month before, even as buyers continued to rely on new construction as an alternative to the historically low supply of existing homes for sale. ![]()
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