The U.S. housing market surprisingly has seen a surge in new home sales this September, even as mortgage rates hit a 23-year high. Because of the limited inventory of pre-existing homes, buyers have been buying newly built properties, leading to a 12.3% spike in sales. This has happened even with the rising mortgage rates that potentially are affecting the affordability of homes. The future landscape still remains uncertain for both homebuyers and builders but this is certainly unexpected and welcome news in the real estate market. After reading the article from The World Property Journal, let me know if you have any questions or if I can help with any of your real estate needs.
Tim Houterloot - Broker/Realtor
317-997-0165 - Cell
indyhomepro@outlook.com
Source: The World Property Journal | Repost Houterloot 10/27/2023 -
The National Association of Home Builders is reporting this week that despite mortgage rates at a 23-year high, new home sales in the U.S. posted a double-digit percentage gain in September 2023, because of a lack of inventory in the resale market.
Sales of newly built, single-family homes in September increased 12.3% to a 759,000 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 September was up 33.9% from a year ago.
"While more buyers are turning to new construction because of a lack of existing inventory, higher mortgage rates that are approaching 8% are expected to slow the market in the coming months as affordability conditions continue to worsen," said Alicia Huey, chairman of the National Association of Home Builders. "Higher interest rates not only raise the cost of housing for buyers, but for builders as well because of increased costs for financing construction loans."
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