Sales of new single‐family houses during May were at a seasonally adjusted annual rate of 619,000, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. This is 11.3% below the revised April rate of 698,000 and is also 16.5% below the May 2023 estimate of 741,000 – last month’s sales pace was also the lowest since November 2023.
The median sales price of new houses sold in May 2024 was $417,400 and the average sales price was $520,000. The seasonally adjusted estimate of new houses for sale at the end of May was 481,000, which represents a supply of 9.3 months at the current sales rate.
Carl Harris, chairman of the National Association of Home Builders, blamed the sales decline on elevated mortgage rates.
“Persistently high mortgage rates in May kept many prospective buyers on the sidelines,” said Harris, a custom home builder from Wichita, Kansas. “However, significant unmet demand exists, and we expect mortgage rates to moderate in the coming months, which will bring more buyers into the market.”
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Are we shocked that median household incomes can’t afford overpriced houses. Drop the prices or keep stacking inventory. I hope it keeps going until we have more inventory than we have ever had.
If the Nar settlement also slows down progress it will happen even faster. Drop the prices.
Prices are a product of supply and demand. Too many buyers chasing not enough homes compounded with high interest rates. Deadly combination. As interest rates Go down prices will continue to go up. Unless someone can figure out how to artificially bring them down. Best to buy now and refinance later.
Yes then it will create another problem
Bring house prices down and make other homes worth less. So that now they will be under water on their mortgage. Not to mention supplies to build a home cost more
How about interest rates just cannot be well above 5% because it cost sooo much more to buy a home than it used to