Post by account_disabled on Mar 13, 2024 0:19:52 GMT -5
Sales of new homes in the US unexpectedly rose in April to the highest level since March 2022 and prices fell , according to US government data. Specifically, new home purchases rose 4.1% to an annualized rate of 683,000 last month, up from a downwardly revised rate of 656,000 in March. The average sales price of new construction fell 8.2% compared to the previous year, to $420,800, which represents the largest decrease since April 2020 and reflects more purchases of cheaper homes.
Sales have risen since hitting a multi-year low in mid-2020 , showing that builders are taking advantage of tight supply in the second-hand market. The gradual increase in demand suggests that residential construction is no longer a drag on the economy.
Even though mortgage rates are about twice as Phone Lead high as they were at the end of 2021, investors have piled into builder stocks due to a lack of used home stock. Additionally, builder confidence is at 10-month highs, partly reflecting greater optimism about sales expectations.
Sales rose nearly 18% in the South, hitting the fastest pace since early last year. Shopping also picked up in the Midwest, hitting the highest level in more than a year.
At the end of last month there were 433,000 new homes for sale, a figure very similar to that of a year ago. This represents 7.6 months of supply at the current sales rate, the lowest level in a year.
The number of homes sold in April and awaiting the start of construction - a measure of delays - rose to a more than one-year high of 155,000 last month.
With homeowners reluctant to list their properties in an environment of higher mortgage rates and builders working to increase production, new construction is gaining market share. According to Robert Dietz, chief economist for the National Association of Home Builders, new construction now represents nearly a third of the housing stock.
New home purchases typically represent more than 10% of total sales and are calculated when contracts are signed.
New home sales are considered a more timely barometer than existing home purchases, which are calculated when contracts are closed. These sales fell to their lowest level in three months in April.
Sales have risen since hitting a multi-year low in mid-2020 , showing that builders are taking advantage of tight supply in the second-hand market. The gradual increase in demand suggests that residential construction is no longer a drag on the economy.
Even though mortgage rates are about twice as Phone Lead high as they were at the end of 2021, investors have piled into builder stocks due to a lack of used home stock. Additionally, builder confidence is at 10-month highs, partly reflecting greater optimism about sales expectations.
Sales rose nearly 18% in the South, hitting the fastest pace since early last year. Shopping also picked up in the Midwest, hitting the highest level in more than a year.
At the end of last month there were 433,000 new homes for sale, a figure very similar to that of a year ago. This represents 7.6 months of supply at the current sales rate, the lowest level in a year.
The number of homes sold in April and awaiting the start of construction - a measure of delays - rose to a more than one-year high of 155,000 last month.
With homeowners reluctant to list their properties in an environment of higher mortgage rates and builders working to increase production, new construction is gaining market share. According to Robert Dietz, chief economist for the National Association of Home Builders, new construction now represents nearly a third of the housing stock.
New home purchases typically represent more than 10% of total sales and are calculated when contracts are signed.
New home sales are considered a more timely barometer than existing home purchases, which are calculated when contracts are closed. These sales fell to their lowest level in three months in April.