New home sales dip unexpectedly as overall sales trend higher
Sales of new U.S. single-family homes unexpectedly fell in February, Reuters reports. Mortgage rates increased during the month but the underlying trend remained strong amid a chronic shortage of previously owned houses on the market. The Commerce Department report released Monday also shows that the median new house price last month was the lowest in […] Sales of new U.S. single-family homes unexpectedly fell in February, with mortgage rates increasing. The Commerce Department reported that the median new house price was the lowest in over 30 months, and supply was the highest since November 2022. Builders are increasing construction and offering price cuts and other incentives to reduce housing costs. The sales pace for January was revised up to 664,000 units from the previously reported 661,000 Units.
Published : a month ago by Daily Report Staff in Finance
Sales of new U.S. single-family homes unexpectedly fell in February, Reuters reports.
Mortgage rates increased during the month but the underlying trend remained strong amid a chronic shortage of previously owned houses on the market. The Commerce Department report released Monday also shows that the median new house price last month was the lowest in more than 30 months, while supply was the highest since November 2022. Builders are ramping up construction, while offering price cuts and other incentives as well as reducing floor size to make housing more affordable.
“Housing activity is stabilizing as homebuilders appear to be building cheaper, and therefore, likely smaller homes,” says Conrad DeQuadros, senior economic adviser at Brean Capital.
New home sales slipped 0.3% to a seasonally adjusted annual rate of 662,000 units last month, the Commerce Department says. The sales pace for January was revised up to 664,000 units from the previously reported 661,000 units.
Topics: Real Estate, Markets