According to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, April’s annual sales pace is down 16.6% from the revised March rate of 709,000 units and 26.9%. In April, the drop in new-home sales was the fourth consecutive monthly dip and the second consecutive month with a double-digit percentage-point drop. When combined with recent reports of low single-family construction activity and persistent existing-home difficulties, April’s data fuel the fire of dwindling homebuyer desire amid rising mortgage rates, low inventory, and still-high prices.
“The volume of signed sales contracts significantly declined in April as the cost of purchasing a home increased in 2022 as interest rates surged higher,” said Jerry Konter, chairman of the National Association of Home Builders (NAHB). “Higher construction costs fueled by rising material prices and supply-side constraints and limited existing-home inventory are pricing many potential homebuyers out of the market.” Read More