US New Home Sales Fall in September; Median House Price Drops From Year Ago
Higher mortgage rates and weak affordability kept demand subdued as the median new-home price fell 3.9% to $400,400, the Commerce Department said.
- On Tuesday, the Commerce Department's Census Bureau reported that new-home sales slipped 0.6% in September to a seasonally adjusted annualized rate of 676,000 units, as higher mortgage rates depressed buyer demand.
- Mortgage rates, which averaged 7.32% last week according to Freddie Mac, have fueled what economists describe as an affordability crisis impacting housing demand ahead of next Tuesday's midterm elections.
- September saw the median new house price fall 3.9% to $400,400 from a year earlier, while inventory for sale of new single-family homes dipped slightly to 480,000 units.
- Homebuilders are relying on large-scale incentives, mortgage-rate buydowns, and price cuts to maintain sales volume, though gross margins and net profits have plunged from previous highs.
- A National Association of Home Builders survey showed expectations for home sales over the next six months tumbled to the lowest level since April 2012, excluding the early COVID-19 pandemic plunge.
12 Articles
12 Articles
Sales of new homes in the U.S. dropped by 0.6% in September, surpassing market expectations that anticipated a further decline.The real estate market continues to slow, with high prices and high mortgage rates, affecting purchasing power.
US new home sales fall in September; median house price drops from year ago
WASHINGTON, Oct 27 (Reuters) - Sales of new US single-family homes fell in September, partially reversing the prior month's jump, as higher mortgage rates because of the Middle East conflict depressed demand. New home sales slipped 0.6% to a seasonall...
Sales of new homes in the United States declined 0.6% in September, on a monthly basis, to a seasonally adjusted annual rate of 676 thousand units, according to data released on Tuesday (27) by the Census Bureau. Sales in August were 680,000 dwellings, at an annual rate. The decrease was lower than that of the consensus of a group of analysts, which pointed to a 4.5% decrease in the monthly base. In relation to the same period in the previous ye…
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