On April 17, 2025, Austin passes through a house construction in a neighborhood in Texas.
Brandon Bell | Getty images
According to the US census, the sales of new single-family homes in May declined in April compared to 623,000 units compared to 623,000 units in April.
The sales were 6.3% lower than the total of May 2024 and below the 671,000 an average of 6 months and a year of 676,000. It also leads to the pre-pandemic average of 685,000 units sold in 2019 in 2019.
According to Dow Jones’s estimates, Wall Street analysts were expected to sell a new house of 695,000.
This count is based on signed contracts, so people shop in May, when hostage rates are very high.
According to the hostage News Daily, the average rate on the 30-year fixed mortgage started at 6.83%, which exceeded 7% consecutive and then returned to 6.95% by the end of the month.
Bradley Saunders, an economist at Capital Economics, wrote, “The major decline in the new house sales in May cancels the positivity of the last few months and acts as a valuable reminder that the buyer activity can increase with only 7%hug rates.”
The builders of the house recently reported a quarterly income, which have recently cut high rates.
Stuart Miller’s co-CEO said, “Macro economy remains challenging, as mortgage interest rates remain more, while consumer confidence is challenged by a wide range of uncertainty both domestic and globally.” LannerOn a call with analysts after the company’s second quarter income. “In the housing scenario, both strength and consumer belief have reduced actionable demand, and therefore it has become soft.”
The traveler reported to reduce prices, but KB HomeWho reported his quarterly earnings this week, increased prices.
At the national level, the average price of a new house to be sold in May was $ 426,600, according to the census report, 3% above the year-of-year price.
Slow sales resulted in a significant collision in the supply. There were 507,000 new houses for sale in late May. It represents a supply of 9.8 months at the current sales rate, which is 15% higher than in May 2024.
The last time supply was briefly in summer of 2022, when the Federal Reserve first began growing from time to time after the interest rates. Earlier, the supply was not high since 2009, between the subprime mortgage crisis and the great recession.
