Sales Of New Homes SINK

[WHITT]

Sales of new homes in the U.S. fell in June to the lowest level since the first month of the U.S. coronavirus pandemic in early 2020, as high prices and a limited selection frustrated scores of would-be buyers.

New-home sales dropped 6.6% to an annual rate of 676,000, the government said Monday. That's how many homes would be sold in a year if the same number were bought in each month as they were in June. The decline in sales was much larger than Wall Street had expected. Economists polled by the Wall Street Journal forecast an annual sales rate of 795,000. The annual rate of sales in May was also revised down to a 724,000 from an initial 800,000.

These problems are expected to act as a drag on the housing market for months to come. Not only that, but also it's preventing many homeowners from selling their current homes because they might not have another home to move into.

https://www.marketwatch.com/story/sales-of-new-homes-slump-to-the-lowest-level-since-start-of-pandemic-high-costs-and-low-selection-are-to-blame-11627308798

[NickB79]

1. There aren't enough homes to satisfy demand anymore

[DURHAM D]

2. These stories are goofy.

Sales dropped because there is no product. eos

Someone wants you to think people aren't buying. blah blah blah

[WHITT]

3. People Can't Buy

if others aren't selling, and others aren't selling because they fear they won't be able to buy. It's a dog chasing it's tail.

[LonePirate]

12. It's definitely a supply issue and not a demand issue or else prices would be dropping.

Prices most certainly are not dropping so the drop in the number of homes sold is due to not enough homes being available to purchase by those wanting to buy a house.

[uponit7771]

5. Hmmmmm, then housing cost should go up again ... we'll see

[DURHAM D]

11. Yes - it is.

Thursday night I saw a real estate agent in my neighborhood putting out her signs at a duplex. It is a small duplex with two bedrooms and one bath on each side. I stopped and asked her if it was already sold. She laughed and said "Sort of". She had a list of people wanting to buy investment property.

That night it was listed on the MLS with a note that said "contract pending". I have a sense of the rental market and thought it was a little over-priced.

Today I saw her picking up her signs. I stopped and asked her how many full price offers she had. She had 7 and could of had several more. So two people got into a back and forth and she got more than $22K over the listed price. Both sides need extensive renovations - it was built in 1972.

The agent asked me where I live. I told her and she asked if I had any interest in listing it because they have nothing to sell and tons of buyers.

[uponit7771]

14. You in Cali? I know the market there is nuts !!!

[DURHAM D]

15. No, lower midwest in a small town. nt

[bamagal62]

4. Not everyone wants a new home.

I would never buy one newer than 1950.
I live in an old neighborhood and houses are selling before they can put a sign up.

[CurtEastPoint]

8. My hood is all 20-50s houses and they go before the sign is up. Thankfully.

[bluedevil4]

6. Not in my town

People are paying more than the asking price

[halfulglas]

7. There was very little NEW housing STARTED during the pandemic.

So of course the sales of new housing plummeted. That's why existing housing stock prices have risen so much. There's a lot of new house building being started right now near where I live, but it's not ready.

[AZSkiffyGeek]

10. Shortages are impacting new builds as well

That's driving prices up and inventory down. Once building materials become available, new home building will start up again and prices should drop.

[brooklynite]

9. So when Sales are DOWN, it's bad because...

People can’t sell their homes to move. And when sales are UP it’s bad because people can’t afford new home prices.

ReL Estateis complicated.

[liberal_mama]

13. Old house sales sure are good though. A house across the street from me (Western New York) sold for

$71,000 in 2018. It sold a month ago for $200,000.

[Sympthsical]

16. Just checked my home valuation

Up 27% in 18 months.

This isn't even slightly normal. The Bay Area has gone batty.

At least there's always . . . Zillow.