Read more: Fed hikes interest rates again
Danushka Nanayakkara-Skillington, assistant vice president for forecasting and analysis at the National Association of Home Builders, voiced the same concerns: “The lack of existing inventory and the Federal Reserve nearing the end of its rate hikes signal that demand for new homes may rise in the coming quarters.”
The estimated new home supply remained balanced in June at 432,000, representing a 7.4 months’ supply at the current building pace. However, supply was down 3.6% from a year ago. Of that total inventory, 67,000 were completed, ready-to-occupy homes, up 91.4% from a year ago.
The median sales price of new homes sold in June was $415,400, down roughly 4% year over year. The average sales price was $494,700.
“As costs of materials get under control, homebuilders are more comfortable selling homes before construction has started,” said Holden Lewis, home and mortgage expert at NerdWallet. “Of the 60,000 new homes sold in June, 13,000 were on lots where ground hadn’t been broken. It’s a sign that homebuilders and homebuyers feel confident in the economy.”
Source: mpamag.com