US Housing Market , Sees Sales of New Homes , Plummet in Several States.
'Newsweek' reports that sales of new homes
across the Northeast and Midwest plummeted
in February, dragging the overall housing
market down across the country.
The news comes at a time when elevated
mortgage rates have already dissuaded
many buyers from purchasing property.
In the Northeast, sales of single-family
homes dropped 31.5%, while the Midwest
saw a more modest decline of 2.4%. .
Sales in the South and West saw
positive increases, with 3.7% and 2.3%,
respectively for the month.
Sales in the South and West saw
positive increases, with 3.7% and 2.3%,
respectively for the month.
According to analysts,
the disappointing numbers
are the result of high mortgage rates.
Rising mortgage
rates subdued
activity in February, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'.
As a result of high mortgage rates, homebuyers
remain reluctant despite lower prices, which
dropped to their lowest level since June 2021. .
As a result of high mortgage rates, homebuyers
remain reluctant despite lower prices, which
dropped to their lowest level since June 2021. .
According to government data, the median
sale price for a single-family home fell by
over $14,000 to reach around $400,000. .
Sales were spurred by a rise
in inventory, as 1.07 million
homes were available for sale
at the end of the month, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'.
The rise in inventories was not
enough to offset the upward
pressure on existing home values;
the median sales price rose
to $384,500, the highest
since November 2023, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'