US Housing Market , Sees Sales of New Homes , Plummet in Several States.
'Newsweek' reports that sales of new homes across the Northeast and Midwest plummeted in February, dragging the overall housing market down across the country.
The news comes at a time when elevated mortgage rates have already dissuaded many buyers from purchasing property.
In the Northeast, sales of single-family homes dropped 31.5%, while the Midwest saw a more modest decline of 2.4%.
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Sales in the South and West saw positive increases, with 3.7% and 2.3%, respectively for the month.
Sales in the South and West saw positive increases, with 3.7% and 2.3%, respectively for the month.
According to analysts, the disappointing numbers are the result of high mortgage rates.
Rising mortgage rates subdued activity in February, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'.
As a result of high mortgage rates, homebuyers remain reluctant despite lower prices, which dropped to their lowest level since June 2021.
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As a result of high mortgage rates, homebuyers remain reluctant despite lower prices, which dropped to their lowest level since June 2021.
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According to government data, the median sale price for a single-family home fell by over $14,000 to reach around $400,000.
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Sales were spurred by a rise in inventory, as 1.07 million homes were available for sale at the end of the month, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'.
The rise in inventories was not enough to offset the upward pressure on existing home values; the median sales price rose to $384,500, the highest since November 2023, Yelena Maleyev, senior economist for KPMG, via 'Newsweek'
