New Home Sales Down in November but Should Improve Moving Forward

2023-12-22T10:24:42-06:00

Elevated mortgage rates acted as a drag on new home sales in November, but with the economy now apparently past peak interest rates for this cycle, sales are expected to rise as we move into the new year. Sales of newly built, single-family homes in November fell 12.2% to a 590,000 seasonally adjusted annual rate, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in November was the lowest annual rate since November 2022 but sales are up 3.9% on a year-to-date basis due to a lack of resale inventory. New home sales were weaker in November as mortgage interest rates likely reached a cycle peak at a 7.79% per Freddie Mac at the end of October. Mortgage rates have since moved lower, with Freddie Mac reporting a 30-year fixed-rate of 6.67% this past week. This is consistent with the NAHB/Wells Fargo increasing in December, with builders indicating they expect a rise in future sales. Sales volume for new construction will improve in the months ahead. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the November reading of 590,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in November jumped to the highest level since November 2022, rising 16.5% from the previous month to 451,000. This represents a 9.2 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. However, the market currently requires a higher level of new construction inventory due to a persistent lack of resale inventory. Newly built homes accounted for 31% of total homes available for sale in November, compared to an approximate 12% historical average. The median new home sale price in November was $434,700, up 4.8% from October, and down 5.9% compared to a year ago. Regionally, on a year-to-date basis, new home sales are up in all four regions: up 4.9% in the Northeast, 3.6% in the Midwest and 4.4% in the South and 2.6% in the West. ‹ Property Tax Revenue Continues to ClimbTags: economics, home building, housing, new home sales, sales

New Home Sales Down in November but Should Improve Moving Forward2023-12-22T10:24:42-06:00

New Home Sales Weaken in October

2023-11-27T10:16:48-06:00

Elevated mortgage rates that averaged 7.62% in October per Freddie Mac, the highest rate since 2000, depressed buyer demand and pushed down new home sales in October. Sales of newly built, single-family homes in October fell 5.6% to a 679,000 seasonally adjusted annual rate, following a notable downward revision in September, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. The pace of new home sales in October was up 17.7% from a year ago. Despite the challenging conditions, sales are up 4.6% on a year-to-date basis due to a lack of inventory in the resale market. Median new home prices have moved lower as new home size has decreased in 2023. Combined with sales incentives and a lack of resale inventory, demand has remained solid in 2023 and should improve in 2024 as interest rates move lower. A new home sale occurs when a sales contract is signed or a deposit is accepted. The home can be in any stage of construction: not yet started, under construction or completed. In addition to adjusting for seasonal effects, the October reading of 679,000 units is the number of homes that would sell if this pace continued for the next 12 months. New single-family home inventory in October increased to the highest level since January, up 8.3% from the previous month, to 439,000. This represents a 7.8 months’ supply at the current building pace. A measure near a 6 months’ supply is considered balanced. Of total inventory, including new and existing homes, newly-built homes made up 30% of all single-family homes available for sale in October – compared to a 12% historical average. The median new home sale price in October was $409,300, down 3.1% from September, and down 17.6% compared to a year ago. Pricing is down both due to builder incentive use and a shift towards building slightly smaller homes. As a result, 33% of sales were priced between $300,000 to less than $400,000, compared to a year ago when just 20% of sales were in that range. Regionally, on a year-to-date basis, new home sales are up 9.5% in the Northeast, 5.8% in the South and 2.5% in the West, while sales are down 0.3% in the Midwest. ‹ Multifamily Built-for-Rent Remains ElevatedTags: economics, home building, housing, new home sales, sales

New Home Sales Weaken in October2023-11-27T10:16:48-06:00

Staying safe during the Coronavirus pandemic.

2021-05-11T08:19:31-05:00

By Hillwood Communities on July 30, 2020 • As we all continue to navigate the disruptive beast that is the Coronavirus, Hillwood Communities is working diligently to continue to partner with our Realtor community to make the sales process as

Staying safe during the Coronavirus pandemic.2021-05-11T08:19:31-05:00

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