"Sales of newly constructed single-family homes surged unexpectedly in August, blowing past economist expectations and hitting their highest level since January 2022 as homebuilders pulled out the stops to move inventory. The seasonally adjusted pace of new-home sales jumped 20.5% from July's upwardly revised annual rate of 664,000 homes to 800,000, according to the Commerce Department. The increase, which represented a 15.4% gain from August 2024, blew past the consensus estimate of 653,000."
""Lower mortgage rates, along with builder incentives and discounts, helped unlock demand in August," First American Deputy Chief Economist Odeta Kushi said, noting that 39% of builders cut prices in September, the highest level since COVID. "Demand is there, but it's taking incentives to coax hesitant buyers off the sidelines. Whether this momentum can be sustained remains to be seen.""
"At the same time, the supply of new homes for sale plunged 17.8% from nine months in July and 9.8% from 8.2 months in August 2024 to 7.4 months at the current sales pace. The median sales price of new homes sold in August was $413,500, up 4.7% from $395,100 in July and 1.9% above August 2024. Regionally, new-home sales ballooned 72.2% month over month in the Northeast and rose by more modest amounts in the South (24.7%), Midwest (12.7%) and West (5.6%)."
""[O]ne month does not make a trend," Kushi said. "It's important to consider the wide confidence intervals in the data and the fact that these figures don't account for cancellations. Nevertheless, it's a welcome sign of buyer life and positive progress in a still-challenging market.""
New single-family home sales rose 20.5% in August to a seasonally adjusted annual rate of 800,000, the highest since January 2022 and 15.4% above August 2024. Builders increased incentives and discounts while mortgage rates declined, prompting higher buyer activity and leading 39% of builders to cut prices in September, the highest level since COVID. The supply of new homes for sale dropped to 7.4 months at the current sales pace. The median sales price was $413,500, up 4.7% month over month. Regional gains were strongest in the Northeast, with smaller increases across the South, Midwest, and West. Data limitations and cancellations could affect sustainability.
Read at Boston Condos For Sale Ford Realty
Unable to calculate read time
Collection
[
|
...
]