Sales of newly built homes in the US dropped in April due to high costs

From CNBC: 2024-05-23 11:59:01

Sales of newly built homes in the US dropped 4.7% in April compared to March, with a larger 7.7% decline from the prior year. The average rate on a 30-year fixed mortgage rose to 7.5% in April, impacting affordability. Builders cite high costs for land, labor, and materials as reasons they cannot lower prices. Big builders like D.R. Horton and Toll Brothers reported strong earnings, beating expectations due to growing demand in the resale market. Low-income families would have to spend 77% of their earnings on a median-priced new home. Housing affordability challenges persist due to a lack of supply, with a shortage of roughly 1.5 million homes nationwide. Policymakers are urged to make changes to support increased housing construction.



Read more at CNBC: Newly built home sales April