Sales of new residential homes fall in July 2022 as fewer Americans buy new homes

The US Census Bureau and the US Department of Housing and Urban Development jointly announced new home sales statistics for July 2022. Fewer Americans are buying new homes when July numbers are taken into account. Sales of new single-family homes in July 2022 were at a seasonally adjusted annual rate of 511,000, down 12.6% from June’s revised rate of 585,000 and 29.6% below the July 2021 estimate of 726,000.

Despite the drop in demand for new homes, prices are not falling and instead rose in July. The median sale price for new homes climbed to $439,400 last month from $402,400 in June, when prices fell to their lowest level in a year from a record high of $458,000 in April.

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The housing stock also shows a reasonably good supply. The seasonally adjusted estimate of new homes for sale at the end of July was 464,000. This represents a 10.9 month supply at the current sales rate – this means the current supply needs 10.9 months to sell. switch off.

House prices rose sharply, then after the series of rate hikes by the Fed, the housing market cooled. Even housing construction activity is slowing, and July’s new construction sales figures also weakened.

Sales of existing homes fell for the sixth consecutive month in July, according to the National Association of Realtors. All four major regions in the United States saw month-over-month and year-over-year sales declines. Total existing home sales transactions, which include single-family homes, townhouses, condominiums and co-ops, fell 5.9% from June to a seasonally adjusted annual rate of 4.81 million in July. Year-on-year, sales fell 20.2% (6.03 million in July 2021).

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The housing sector’s woes are far from over. Mortgage rates have risen and could rise further when the Fed raises rates next month. While home prices remain high, sluggish demand for new homes and new home construction could also continue.