In April, sales of new homes were down 26.9% from the same month a year ago, far more than expected.
The rate was 591,000 units. The analysts had 888-276-5932 888-276-5932s. The March read was revised lower.
The sales pace was the lowest since April 2020, when everything stopped at the start of the Covid epidemic. Americans were looking for bigger homes with outdoor spaces.
The most up-to-date indicator in the housing market is the number of signed contracts. Mortgage rates went up in April. The average rate on the 30-year fixed loan ended the month at 5.41% and began the month at 4.88%.
Consumers are being hit by high inflation and rising interest rates. That makes it harder for them to afford a home. In April, the median price of a new home was $450,600, an increase of 20% from the year before.
George Ratiu said that new construction gained favor with many would-be buyers over the past two years due to the extreme shortage of existing homes for sale.
The market is not overconstruction and is hitting a sharp decline in demand. Over the past few months, housing starts have fallen. The inventory of newly built homes jumped to a nine-month supply because of slower sales. A six-month supply is balanced between buyers and sellers.
Builders are starting to see an increase in cancellation rates. Analysts who follow the builders are starting to report on it.
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