Increase new home sales in USA despite increase in mortgage interest
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| New Home in USA |
Although the housing market in the United States during the spring season is experiencing low supply, rising prices, and increasing interest rates, potential homebuyers focus on new construction because new homes have more incentives and availability than previously owned ones.
According to data from the Census Bureau and the US Department of Housing and Urban Development, 693,000 new single-family homes were sold in March, an 8.3% increase over the same month last year, and the average sale price was $430.7,000.
Meanwhile, sales of previously owned homes fell 3.7% last March compared to March 2023, the National Association of Realtors found.
With 30-year mortgage interest rates above 7%, homeowners who bought at much lower interest rates in recent years are not opting to sell their homes.
Meanwhile, buyers are turning to builders, which are usually more flexible with pricing. Homebuilders offer buyers incentives such as price discounts and interest.