US Housing Market Improves As Buyers Expect FED Rate Cuts
The housing market has been pretty stable in these last four years despite the surging house prices and mortgage interests helped by the FED
The housing market has been pretty stable in these last four years, despite the surging house prices and mortgage interests helped by the FED. This sector together with the employment sector has been helping keep the US economy afloat, and now that the FED is preparing to lower interest rates, home buyers are feeling even better.
The US new home sales for February came in at 662,000, slightly below the expected 675,000. The previous figure was revised from 661,000 to 664,000. Sales decreased by 0.3% compared to a prior increase of 1.5%. The supply of new homes stands at 8.4 months, slightly higher than the 8.3 months reported previously. The median sale price for new homes was $400.5K, down from $420.7K last month and $433K a year ago.
Key Highlights from the US February New Home Sales Report
- New home sales for February came in at 662,000, slightly below the expected 675,000.
- February building permits revised to 1.524m from 1.518m
- Building Permits are up by 2.4% MoM
- The previous month’s figure was revised upward from 661,000 to 664,000.
- Sales declined by 0.3% compared to the prior month’s increase of 1.5%.
- The supply of new homes stands at 8.4 months, up from 8.3 months in the previous period.
- The median sale price for new homes in February was $400,500, lower than the $420,700 reported last month and significantly below the $433,000 recorded a year ago.
The data indicates that the situation is somewhat milder than what builders have suggested, but there are concerns primarily related to the pipeline of new homes, which is expected to impact the market in the summer. Builders are responding to rising borrowing rates by reducing the square footage of homes, aiming to make them more accessible to buyers.
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