Tagged: New Home Sales

High rates persist; could deter buyers

Pending home sales rose modestly in August by 0.6%

Roughly 40% of new builds are going to first-time homebuyers, but larger firms have more success reaching this group of buyers.

With single-family starts and permits rising in August, Fed rate cuts ease construction costs for builders, though competition from resale inventory also stands to increase

Builders optimistic for the first time since May, reports National Association of Home Builders

Applications remained unchanged from July, but estimated new home sales increased almost 15% over the month, said the MBA.

New-home sales from January through July rose 2.6% compared to the first seven months of 2023

Matching a summer decline in sentiment, builders continue to grapple with high construction and development costs

Low affordability causing buyers to hesitate has led more builders to cut prices so as to bolster sales

But, industry experts say sales data obscure still-strong demand for new construction.