In 2024, new-home sales reached 683,000, marking a notable rise amid a decline in existing-home transactions. This figure, reflecting the highest sales rate since the housing crisis, indicates a significant recovery, with new homes now representing 14.4% of all sales. High mortgage rates have limited existing-home sellers, while homebuilders can offer rate buydowns and quickly adapt to demand fluctuations. The variance in sales dynamics suggests that 2025 predictions remain cautious, as existing-home sales are expected to rise slightly, but still fall short of historical performance.
New-home sales topped 683,000 in 2024, marking the second consecutive annual gain, making them a bright spot amid a slump in existing-home sales.
New-home sales accounted for 14.4% of all transactions, the highest share since 2005, influenced by high mortgage rates keeping sellers from the market.
Homebuilders enjoy advantages over existing-home sellers, including the ability to offer rate buydowns and respond quickly to market demand.
Sales dynamics show that new-home sales are more volatile than existing ones, reflecting builders' capacity to adapt to market demand.
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