{"id":1537,"date":"2023-01-29T12:13:34","date_gmt":"2023-01-29T12:13:34","guid":{"rendered":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/01\/29\/u-s-new-home-sales-rise-by-2-3-despite-broader-sector-weakness\/"},"modified":"2023-01-29T12:13:34","modified_gmt":"2023-01-29T12:13:34","slug":"u-s-new-home-sales-rise-by-2-3-despite-broader-sector-weakness","status":"publish","type":"post","link":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/2023\/01\/29\/u-s-new-home-sales-rise-by-2-3-despite-broader-sector-weakness\/","title":{"rendered":"U.S. New Home Sales Rise by 2.3%, Despite Broader Sector Weakness"},"content":{"rendered":"

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The numbers:<\/strong>\u00a0U.S. new home sales rose 2.3% to a seasonally-adjusted rate of 616,000 in December, from a revised 602,000 in the prior month, the Commerce Department reported Thursday.<\/p>\n

This is the third month in a row that new home sales have risen. Existing-home sales, on the other hand, continue their downward streak.<\/p>\n

The December sales figure beat analyst estimates slightly. Analysts polled by the Wall Street Journal had forecast new home sales to come in at 615,000 in December.<\/p>\n

The sales of new homes are below a peak of 1.04 million in August 2020.<\/p>\n

Year-over-year, new home sales are still down by 26.6%.<\/p>\n

New home sales rose a revised 0.7% to 602,000 in November, compared with the initial estimate of a 5.8% increase to 640,000.<\/p>\n

The new home sales data are volatile month-on-month and are often revised.<\/p>\n

Key details:<\/strong>\u00a0The median sales price of a new home sold in December was $442,100.<\/p>\n

The supply of new homes for sale fell by 2.2% between November and December, equating to a 9-month supply.<\/p>\n

Regionally, the Midwest led the U.S. in the number of new homes sold, with new homes sold surging by 35.2%, followed by the South.<\/p>\n

Sales of new homes dropped in the Northeast by 19.4% and the West by 15.3%.<\/p>\n

Looking at 2022 overall, 644,000 new homes were sold, the government says. In 2021, 771,000 new homes were sold.<\/p>\n

Big picture:<\/strong>\u00a0Mortgage rates are falling, but there\u2019s a shortage of homes available for sale for eager home buyers.<\/p>\n

Since home builders are one of the biggest contributors at the present moment to the housing supply, they\u2019re seeing a jump in sales.\u00a0Existing-home sales, on the other hand, are down as homeowners sit on homes with ultra-low mortgage rates.<\/p>\n

Builders are also successfully moving inventory by offering deals, like mortgage rate buydowns and other concessions.<\/p>\n

What are they saying? Yes, new home sales rose, but they form a \u201cvery small part of overall home sales,\u201d Rubeela Farooqi, chief U.S. economist at High Frequency Economics, wrote in a note. \u201cExisting home sales have remained very weak.\u201d<\/p>\n

High mortgage rates continue to hit affordability, she added, which continues to weigh heavily on home sales.<\/p>\n

Market reaction:<\/strong> The Dow Jones Industrial Average and the S&P 500 were mixed in early trading on Thursday. The yield on the 10-year Treasury note\u00a0fell below 3.5%.<\/p>\n

Shares of builders, including D.R. Horton, Inc., Lennar Corp, PulteGroup Inc., and Toll Brothers Inc.\u00a0opened higher during morning trading.<\/p>\n

The post U.S. New Home Sales Rise by 2.3%, Despite Broader Sector Weakness<\/a> appeared first on Real Estate News & Insights | realtor.com\u00ae<\/a>.<\/p>","protected":false},"excerpt":{"rendered":"

Getty Images The numbers:\u00a0U.S. new home sales rose 2.3% to a seasonally-adjusted rate of 616,000 in December, from a revised 602,000 in the prior month, the Commerce Department reported Thursday. This is the third month in a row that new home sales have risen. Existing-home sales, on the other hand, continue their downward streak. The…Read More→<\/a><\/p>\n","protected":false},"author":0,"featured_media":1538,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/comments?post=1537"}],"version-history":[{"count":0,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/posts\/1537\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media\/1538"}],"wp:attachment":[{"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/media?parent=1537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/categories?post=1537"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/billingsrealtybrokers.paradiseinnovations.com\/index.php\/wp-json\/wp\/v2\/tags?post=1537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}