“Compared to years in the past, new home sales still aren’t performing as well as necessary to help reduce the high demand for new homes in the near term,” Hepp said.
At the end of March, there were an estimated 477,000 new homes remaining for sale, representing an 8.3-month supply at the current sales rate.
While initial predictions suggested lower mortgage rates by this point in the year, recent strong job growth numbers have prompted the Federal Reserve to delay potential rate cuts. However, Gregg Logan, principal at RCLCO Real Estate Consulting, remains optimistic.
“Nonetheless, lower mortgage rates are still anticipated in the second half of the year, which will lead to stronger new home sales in the third and fourth quarter,” he said.
The median sales price of new houses sold in March 2024 was $430,700, while the average sales price was $524,800.
Source: mpamag.com