Tue. Jun 25th, 2024
February Sees a Decline in New Home Sales

Despite the decline in sales of newly constructed homes in February, the market for previously owned homes saw a boost. According to data from the U.S. Census Bureau, approximately 662,000 new homes were sold in February, which is slightly below the expectations of economists surveyed by Dow Jones Newswires and Wall Street Journal, who predicted an annual rate of 675,000 new home sales.

The decline in new home sales can be attributed to high interest rates that have made current homeowners wary of selling their homes and purchasing new ones with higher mortgage rates. This has led to a reduced inventory of homes for sale, prompting economists to suggest that building more new homes would help stimulate the market. Nancy Vanden Houten, an economist at Oxford Economics, predicts that the pace of new home sales will increase throughout 2024, supported by lower mortgage rates, increased supply, and a scarcity of existing homes for sale.

On the other hand, existing home sales saw a boost of 9.5% in February due to slightly lower interest rates that alleviated some of the market’s stagnation. The high demand for existing homes has led to increased prices and a shortage of inventory in some regions.

Despite the slight decline in February’s new home sales figures compared to January’s revised annual rate, it is still 5.9% higher than the same time last year. However, experts believe that this trend will change over time as interest rates continue to drop and more people are able to secure loans with lower mortgage rates.

Overall, while there was a slight decline in February’s new home sales compared to previous months and expectations from experts surveyed by Dow Jones Newswires and Wall Street Journal, it is expected that this trend will change as interest rates drop and more people are able to secure loans with lower mortgage rates.

By Aiden Nguyen

As a content writer at newscholarly.com, I delve into the realms of storytelling with the power of words. With a knack for research and a passion for crafting compelling narratives, I strive to bring forth engaging and informative articles for our readers. From decoding complex concepts to unraveling current events, I aim to captivate and educate through the art of writing. Join me on this journey as we explore the ever-evolving landscape of news and knowledge together.

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