U.S. new home sales fall in January as prices march higher

[mahatmakanejeeves]

Source: Reuters, via Yahoo! Finance

Reuters

U.S. new home sales fall in January as prices march higher

Thu, February 24, 2022, 10:29 AM

WASHINGTON(Reuters) - Sales of new U.S. single-family homes fell slightly more than expected in January, likely as rising mortgage rates and higher prices sidelined some first-time buyers from the market.

New home sales fell 4.5% to a seasonally adjusted annual rate of 801,000 units last month, the Commerce Department said on Thursday. December's sales pace was revised higher to 839,000 units from the previously reported 811,000 units. ... Sales dropped in the Midwest, Northeast and the densely populated South. But they rose in the West. Economists polled by Reuters had forecast new home sales, which account for more than 10% of U.S. home sales, falling to a rate of 806,000 units.

Sales tumbled 19.3% on a year-on-year basis in January. ... They peaked at a rate of 993,000 units in January 2021, which was the highest since the end of 2006. Mortgage rates are near three-year highs.

The new housing market remains underpinned by a record-low inventory of previously owned homes. Demand for housing is expected to remain strong even as mortgage rates increase, which together with high prices will further erode affordability, especially for first-time buyers. ... The median new house price in January increased 13.4% from a year ago to $423,300. There were 406,000 new homes on the market, up from 394,000 units in December.

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Read more: https://finance.yahoo.com/news/u-home-sales-fall-january-152958440.html

[cinematicdiversions]

1. You have to have houses to sell to sell houses. NT

[WHITT]

2. You Get The Wordsmith Award Of The Day

[NullTuples]

3. What houses? They've all been snapped up or get snapped up by lenders for their rental portfolios.

And then packaged into investment bundles.

[WilmywoodNCparalegal]

4. The housing market is crazy here in Vegas

it's impossible to buy a resale home if you need a mortgage. I bought a townhome under construction and it's barely under $400K. The prices on this townhome rise by $10,000 every week and that's with basic options (no frills).

My worry is how can people afford it because the salaries in Vegas are horrible.

Rentals are also sky high and Nevada does not put caps on rent increases. My rent for my current 1 bedroom apartment (which is super nice) is only $100 less than what my mortgage will be once the townhome is finished in April/May.