Newsfeed: US New Home Sales Tumble In January As Mortgage Rates Soar

By Tyler Durden

Despite existing home sales unexpected surge in January, new home sales are expected to drop modestly (-1.2% MoM) in January (after a huge unexpected surge in December), but sales actually tumbled considerably more (down 4.5% MoM) to 801k SAAR (from 839k SAAR).

Source: Bloomberg

However, on a year-over-year basis, new home sales are still notably lower.

Was the surge in December just demand pulled forward as mortgage rates started to accelerate?

Source: Bloomberg

Median home prices in January were just shy of all time high at $423,300 (+13.4% YoY)… (and average new home price – $496,900 – did indeed hit a new all-time high)

Bloomberg reports that while underlying demand for new homes remains solid, fueled in part by record low inventory in the resale market, the highest mortgage rates since mid-2019 represent a headwind. Higher materials costs are also contributing to housing inflation and sidelining many prospective buyers.

Homebuilder confidence is ebbing a little, but remains nothing relative to the collapse in ‘real’ homebuyer confidence (as opposed to yield-seeking investment buyers)…

Source: Bloomberg

Will Powell’s rate-hikes make that situation any better?

 


More From The Real Estate Guys™…

  • Check out all the great free info in our Special Reports library.
  • Don’t miss an episode of The Real Estate Guys™ radio show. Subscribe on iTunes or Android or YouTube!
  • Stay connected with The Real Estate Guys™ on Facebook,  and our Feedback page.

The Real Estate Guys™ radio show and podcast provides real estate investing news, education, training, and resources to help real estate investors succeed.


Subscribe

Broadcasting since 1997 with over 600 episodes on iTunes!

real estate podcast on itunesSubscribe on Androidyoutube_subscribe_button__2014__by_just_browsiing-d7qkda4

 

 


Love the show?  Tell the world!  When you promote the show, you help us attract more great guests for your listening pleasure!

 

 

Share on facebook
Facebook
Share on twitter
Twitter
Share on linkedin
LinkedIn
Share on email
Email

Be the first to know when new content arrives!

Explore The Archives

Archives
Metal Ask Change
Gold $1640.64 $-7.45
Silver $18.64 $-0.36
Platinum $873.12 $0.29
Palladium $2127.93 $7.08
Gold to Silver 88.02 to 1
Gold to Platinum 1.88 to 1
Gold to Palladium 0.77 to 1

The Real Estate Guys™ Guests and Contributors Have Been Featured On: