In the U.S., according to the Associated Press via National Association of Realtors and headline of the Washington Post, sales of new homes have slumped 7.8% in May and in the more expensive areas of the Northeastern and Western markets sales plunged.
For the first five months of the year, new homes have fallen 3.7% compared to the same time frames in 2018.
The market is currently trying to stabilize itself by lowering mortgage rates and by establishing a healthier job market, but these factors and efforts have not shown an increase in home buying.
Sales, of new homes, in the west seen a 35.9% decrease and in the Northeast a 17.6% decrease, however in the south new home sales rose 4.9% and 6.3% in the Midwest, but these areas generally provide a more affordable market.
Sales of existing homes, which are often the bulk of our market, however, rebounded in May. They increased 2.5% to a seasonally adjusted annual rate of 5.34 million, showing signs that lowering mortgage rates might still have a chance of improving the buyers.
New home median sale prices are starting to take a downward direction falling 2.7% from one year ago to $308,000.
Some are hopeful that there could be a chance for the market to make adjustments to recover.
What are your thoughts on the market changes? Do you have your own predictions? Do you have questions or concerns? Feel free to reach out to us, we are here to help you make real estate related decisions.