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
Infrastructure Urban

Canal Water Boost for Mudki

In a significant push for public health and urban development, MLA Rajneesh Dahiya has announced a Rs.280 million canal water supply project for Mudki town in the Ferozepur Rural constituency. The initiative aims to provide clean drinking water to every household within Mudki’s municipal limits. Speaking about the development, Dahiya said the project falls under the Centre’s AMRUT (Atal Mission for Rejuvenation and Urban Transformation) scheme and is being carried out with the support of Punjab Chief Minister Bhagwant Singh Mann and Local Government Minister Dr. Inderbir Nijjar. “This ..

Next Story
Infrastructure Transport

6 Tunnel Boring Machines Idle in Chennai

Six tunnel boring machines (TBMs) deployed by the Chennai Metro Rail Limited (CMRL) are currently lying idle beneath city roads, stuck in limbo due to delayed construction of underground stations at Moolakadai, Perambur, and Mandaveli. The TBMs, launched as part of Corridor 3 of the Phase II Metro project from Madhavaram to SIPCOT, have reached their designated stations but are unable to proceed as the station boxes are incomplete. Without a completed diaphragm wall or station box, the machines cannot break through or be dismantled for reuse. According to CMRL officials, the root of the dela..

Next Story
Infrastructure Transport

Mumbai Metro 3 Nears Launch

The Mumbai Metro Rail Corporation shared a sneak peek of the newly completed Acharya Atre Chowk station on Metro Line 3 (Aqua Line) this Sunday, drawing both praise and impatience from the public. Located on the 9.77 km stretch between Bandra Kurla Complex (BKC) and Worli, the underground station is part of a long-anticipated corridor that promises to ease traffic and boost east-west connectivity. The social media update, posted by the handle @MumbaiMetro3, featured images of the station’s sleek new interiors. But the post quickly sparked a flurry of comments, with several users demanding c..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?