US new home sales dip 0.3% in February 2024
Real Estate

US new home sales dip 0.3% in February 2024

The report from the Commerce Department indicated an unexpected decline in the sales of new US single-family homes in February, following an increase in mortgage rates during the month. However, it noted that the overall trend remained robust amidst a persistent shortage of previously owned houses available in the market.

According to Conrad DeQuadros, a senior economic advisor at Brean Capital, housing activity seemed to be stabilizing as homebuilders were observed to be constructing more affordable and likely smaller homes. DeQuadros mentioned that sales had maintained relative stability around the levels seen in December over the past two months, with prices experiencing a decline at mid-single-digit rates on a year-over-year basis.

The data revealed that the median price of new homes last month was the lowest in more than 2-1/2 years, while the supply reached its highest level since November 2022. Builders were reported to be increasing construction efforts and implementing strategies such as price reductions, offering incentives, and reducing floor size to enhance housing affordability.

The Commerce Department's Census Bureau reported a 0.3% decrease in new home sales to a seasonally adjusted annual rate of 662,000 units in the previous month. The sales pace for January was revised upward to 664,000 units from the initially reported 661,000 units. Economists surveyed by Reuters had predicted that new home sales, constituting 13.1% of U.S. home sales, would climb to a rate of 675,000 units. Notably, new home sales are recorded at the contract signing stage, rendering them a leading indicator of the housing market, albeit subject to volatility on a month-to-month basis. Sales saw a year-on-year increase of 5.9% in February.

The report from the Commerce Department indicated an unexpected decline in the sales of new US single-family homes in February, following an increase in mortgage rates during the month. However, it noted that the overall trend remained robust amidst a persistent shortage of previously owned houses available in the market. According to Conrad DeQuadros, a senior economic advisor at Brean Capital, housing activity seemed to be stabilizing as homebuilders were observed to be constructing more affordable and likely smaller homes. DeQuadros mentioned that sales had maintained relative stability around the levels seen in December over the past two months, with prices experiencing a decline at mid-single-digit rates on a year-over-year basis. The data revealed that the median price of new homes last month was the lowest in more than 2-1/2 years, while the supply reached its highest level since November 2022. Builders were reported to be increasing construction efforts and implementing strategies such as price reductions, offering incentives, and reducing floor size to enhance housing affordability. The Commerce Department's Census Bureau reported a 0.3% decrease in new home sales to a seasonally adjusted annual rate of 662,000 units in the previous month. The sales pace for January was revised upward to 664,000 units from the initially reported 661,000 units. Economists surveyed by Reuters had predicted that new home sales, constituting 13.1% of U.S. home sales, would climb to a rate of 675,000 units. Notably, new home sales are recorded at the contract signing stage, rendering them a leading indicator of the housing market, albeit subject to volatility on a month-to-month basis. Sales saw a year-on-year increase of 5.9% in February.

Next Story
Technology

We’re building robots that flow, not just move

Founded in 2021, Flo Mobility is reimagining construction automation with vision-AI robots designed for seamless movement through complex sites. In conversation with CW, Manesh Jain, Founder & CEO, discusses the company’s origin, its LiDAR-free tech stack, and expansion plans in the Middle East and US.What inspired the name Flo Mobility? Why ‘Flo’ and not ‘Flow’?When we started the company in 2021, our focus was on building autonomous navigation systems for robots. Since our work centred around robot movement, ‘mobility’ naturally became part of the name. We wanted to co..

Next Story
Real Estate

We’re committed to setting benchmarks in sustainable luxury living

From a landmark land acquisition in Boisar to ambitious launches across the Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Bengaluru and Pune, Birla Estates is driving future-ready growth with a strong focus on sustainability, partnerships and premium living, firmly anchored in its LifeDesigned® philosophy. K T Jithendran, Managing Director & CEO, outlines the company’s premium, sustainable growth playbook in conversation with PRATAP PADODE, Editor-in-Chief, CW. Excerpts:Birla Estates recently acquired a 70.92-acre land parcel in Boisar, Maharashtra, for..

Next Story
Infrastructure Urban

Mumbai’s land crunch and ageing homes call for structured renewal

Founded in 2022, Etonhurst Capital Partners is a real-estate fund management platform focused on the Indian market. As the firm achieves the first close of Rs 1.8 billion for its debut Rs 5 billion fund, Bamasish Paul, Co-founder, Managing Partner & CEO, discusses its sharp focus on redevelopment-driven value creation in Mumbai’s urban core with CW. Excerpts:Etonhurst Capital has achieved a significant milestone with the first close of Rs 1.8 billion for its Rs 5 billion fund. What factors contributed to this early success and how do you plan to attract further investments to r..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?