August new home sales soar 20%
According to the US census, the sales of newly built houses have increased to the highest level since January 2022, a much larger than expected in August. It is also the biggest gain since August 2022. Sales were 15.4% higher than August 2024.
This number is based on shopping and signing agreements in August when the average ratio on the 30 -year fixed mortgage is higher than today. According to Mortgage News Daily, this rate started 6.63%in August and did not really move for the month.
The sharp decrease in rates began in September when the Federal Reserve fell to 6.13% the day before reducing the lending rate, and then moved higher at 6.37%.
Considering that the rates have not yet fallen, August sales will be so high. Some of the answer can be in the questionnaire itself.
“We were expecting a profit, but we are not so big.” He said. “It is always important to remember that the error margin is large for new home sales. We will have to wait for the next month and September data point revisions to see if it has been corrected.”
Ivy Zelman, an analyst of Homebuilder from Zelman & Assocates, said the number was “right as a orientation, but the size is too high.” He also stated that the census report has a very small sample size and that the large public founders with a market share of 60% together did not participate.
Zelman conducted his own survey with a higher sample size covering 15% of home builders and showed a 6% sales increase from year to year.
While builders talked a lot about reducing prices and incentives, the average price of a new house sold in August was 413,500 dollars with an annual increase of 1.9%. In a separate research on the feeling of builders from the National Home Builders Association, 39% of the builders reported their reduction prices in September for 37% in August and the highest percentage in the period in the post -level period.
New home sales were the most powerful in the Northeast, where general new construction was low, so that fluctuations could be large. In addition, it was stronger in the south where the construction of the house was the most intense. Although sales were higher, the prices were the weakest in the West, where prices were highest.
“Although I should believe that the raised level of home builder incentives is the main catalyst for new home sales, although one point BFG Wealth Partner’s chief investment manager is the chief investment manager, although it is always best to recover, the raised level of home -builder incentives. “And, of course, we will see the effect of low mortgage ratios when the number of September emerges, but if the mortgage rates continue … Builders will reduce the speed of the benefits of low mortgage rates for new houses.”
Strong sales decreased by about 18% from a nine -month supply in July, and the inventory reduced a 7.4 -month -old supply in August. Single -family housing starts and permits slowed down both in July and from August last year. This seems to show that builders expect more slow sales.
