New-Home Sales in September Tank

David Deem
714-997-3486

At a disappointing estimate of 553,000, new-home sales in September tanked, backtracking 5.5 percent from the previous month, according to the Commerce Department. There were 327,000 for-sale homes in September, representing 7.1-months' supply—a high—with a median price of $320,000.

"Home price gains and rising interest rates are slowing down the housing market, particularly in high-cost areas and among entry-level buyers who are sensitive to price increases," said Robert Dietz, chief economist of the National Association of Home Builders (NAHB), in a statement. "Builders need to provide homes at different price points to address these affordability concerns. Meanwhile, overall job and economic growth should help support the housing market in the months ahead as it adjusts to higher mortgage interest rates."

"Builders have not been building like they used to for some time now—and with winter coming, they appear to be in retreat even from those historically low levels," said Aaron Terrazas, senior economist at Zillow, in a statement. "The scourge of storms and higher construction costs aside, builders can read the early signs of a cooling housing market as well as anyone, including a slowing in home value growth, rising mortgage rates and an uptick in price cuts.

"With an increasingly cloudy economic outlook over the next two years, builders may be growing weary of putting sticks in the ground that won’t be delivered to buyers for several months' time," Terrazas said. "The longer the delivery horizon, the more blurred the outlook appears, and having only barely recovered from the last downturn, no one is eager to be swept away in the next economic storm brewing just beyond the horizon."

www.DeemTeam.com
DRE# 01266522


Location: Orange, CA, USA

Comments

Post a Comment

Popular posts from this blog

Orange County Housing Summary: June 27, 2023

Image
David Deem Broker Associate 714-997-3486 Dave@DeemTeam.com   ·        The active listing inventory in the past couple of weeks increased by 85 homes, up 4%, and now sits at 2,281. Regardless, it is the lowest level for an end to June since tracking began in 2004. In May, 45% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,879 less. Last ye ar, there were 3,491 homes on the market , 1,210 more homes, or 53% higher . The 3-year average before COVID (2017 to 2019) was 6,633, or 191% more, nearly triple. ·        Demand, the number of pending sales over the prior month, increased by 7 pending sales in the past two weeks, nearly unchanged, and now totals 1,602, the lowest level for an end to June since tracking began in 2004. Last year, there were 1,861 pending sales, 16% more than today . The 3-year average before COVID (2017 to 2019) was 2,679, or 67% more . ·        With the supply rising, the Expected Market Time, the number of days to sell
Read more

Orange County Housing Summary:May 2, 2023

Image
David Deem 714-997-3486 Dave@DeemTeam.com   ·        The active listing inventory in the past couple of weeks increased by 34 homes, up 1%, and now sits at 2,076, this first substantial rise of the year. Nonetheless, it is the lowest level at the end of April since tracking began in 2004. In April, 49% fewer homes came on the market compared to the 3-year average before COVID (2017 to 2019), 1,983 less. Last ye ar, there were 2,104 homes on the market, 28 more homes, or 1% higher. The 3-year average before COVID (2017 to 2019) was 6,002, or 189% more. ·        Demand, the number of pending sales over the prior month, increased by 43 pending sales in the past two weeks, up 3%, and now totals 1,706, the lowest end-of-April reading since 2020 during the COVID lockdown. Last year, there were 2,154 pending sales, 26% more than today. The 3-year average before COVID (2017 to 2019) was 2,780, or 63% more. ·        With the inventory and demand rising at a similar rate, the Expected Market Tim
Read more

Orange County Housing Summary: September 20, 2022

Image
  David Deem 714-997-3486 Dave@DeemTeam.com          ·         The active listing inventory in the past couple of weeks decreased by 304 homes, down 2%, and now sits at 3,638, its lowest level since June. In August, there were 30% fewer homes that came on the market compared to the 3-year average prior to COVID (2017 to 2019), 1,054 less. Last ye ar, there were 2,289 homes on the market , 1,349 fewer homes, or 37% less . The 3-year average prior to COVID (2017 to 2019) was 6,520, or 79% more. ·         Demand, the number of pending sales over the prior month, decreased by 75 pending sales in the past two weeks, down 4%, and now totals 1,756. It is still the lowest reading for mid- September since 2007. Last year, there were 2,623 pending sales, 49% more than today . The 3-year average prior to COVID (2017 to 2019) was 2,363, or 35% more . ·         With demand dropping faster than the supply of homes , the Expected Market Time, the number of days to sell all Orange County listin
Read more