2023-11-27 15:23:00
The number of new home sales in the U.S. decreased in October, falling below market expectations. The previous month’s figures were also revised downward. This suggests that mortgage interest rates, which are at the highest level in decades, are putting pressure on demand.
Key Points New single-family home sales (seasonally adjusted, annualized) fell 5.6% month-over-month to 679,000 units, falling below all economist forecasts compiled by Bloomberg.Median forecast was 721,000 units, down from 719,000 units last month. (Preliminary figure: 759,000 units) Revised downward
Mortgage interest rates peaked at nearly 8% last month. It has been on a downward trend since then, driven by speculation that the US monetary tightening cycle is nearing an end. If this trend continues, the inventory of used homes will increase and the demand for purchasing properties may increase.
The median sales price of newly built homes fell to $409,300 (approximately 61 million yen). Although this is down more than 17% from a year ago, it is still well above pre-coronavirus levels.
There were 439,000 properties listed for sale at the end of October, an increase for the third consecutive month and the highest level since January.
By region, the number decreased to the lowest level in regarding a year in the Midwest. It also decreased in the west.
See table for detailed statistics.
Original title:US New-Home Sales Fall as High Mortgage Rates Weigh on Demand(excerpt)
(Updates with more statistics)
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