New-Home Sales See Big Fall in AugustBy Claudia Larsen
Due to rising mortgage rates and a lack of inventory, new-home sales saw a drastic 8.7% dip in August, according to a new report from the National Association of Home Builders (NAHB).
NAHB reported, using data from the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, that sales of newly built, single-family homes were at a rate of 675,000 in August. While down month-over-month, sales are up 5.8% from a year ago. “Sales weakened in August with average mortgage rates above 7%,” said NAHB Chief Economist Robert Dietz. “While some builders were able to offset that effect via mortgage rate buydowns, rates moved higher this month, suggesting the pace of new-home sales will weaken further for September.” The data:
“Builders are being more cautious about managing their inventory in this rising rate environment, added Dietz. “A year ago, 10% of the new-home inventory listed for sale consisted of homes that had not yet started construction, and that share has now risen to 17% of the total inventory.” Claudia Larsen is an associate editor for RISMedia. |
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