US Home Sales Surge to a 15-Month High Amidst Favorable Market Conditions



According to data released by the U.S. Commerce Department on June 27, the housing market in the United States saw a significant boost in May 2023. Detached home sales reached a 15-month high, primarily driven by the scarcity of supply in used homes.

A-2

According to data released by the U.S. Commerce Department on June 27, the housing market in the United States saw a significant boost in May 2023. Detached home sales reached a 15-month high, primarily driven by the scarcity of supply in used homes. The annual U.S. new home sales rose by an impressive 12.2% to a total of 763,000 units, the highest level since February 2022. This figure surpassed the forecast made earlier by economists polled by Reuters, who predicted 675,000 units.

US Home Sales Surge to a 15-Month High Amidst Favorable Market Conditions

While home sales experienced a surge, there was a notable decline in the average U.S. new home price in May. The year-over-year analysis revealed a decrease of 7.6%, with the average price per unit falling to $416,300. This decline in prices can be attributed to several factors, including the increased availability of new homes on the market. At the end of May, there were 428,000 new homes available for sale, which was a slight decrease compared to the 432,000 homes on the market in April. With the current sales rate, it is estimated that it would take approximately 6-7 months to sell out all the homes on the market.

Economists have noted that the U.S. housing market may have reached its bottom and is now showing signs of improvement. Recent figures revealed that builders' confidence levels in June 2023 rose to positive levels for the first time in 11 months. This increase in confidence indicates a positive outlook for the housing market, with builders anticipating a surge in demand for new homes.

Interestingly, despite the upward trend in mortgage rates, home sales continued to rise in May. This can be attributed to the scarcity of supply in the used housing market, which resulted in potential buyers turning their attention to new homes instead. In May, there were approximately 1.08 million used homes available for sale, and it is estimated that it will take around 3 months to sell off the existing inventory.

A-3

The average interest rate on a 30-year fixed mortgage rose from the previous month, reaching 6.57% in May 2023, according to mortgage lender Freddie Mac. Despite this increase, it did not deter buyers from entering the housing market, further fueling the surge in home sales.

In conclusion, the U.S. housing market has seen a significant uptick in sales, driven by the scarcity of available used homes and increased confidence among builders. The decline in average home prices, along with favorable mortgage rates, has attracted buyers to the market. These positive indicators suggest that the housing market is on an upward trajectory, marking a potentially promising period for both buyers and sellers alike.

US Home Sales Surge to a 15-Month High Amidst Favorable Market Conditions

Support Ogusyis by making a contribution – no matter how small.


Enter your amount
£
Enter your amount
£
Enter your amount
£
Yourname
Email
Phone

AD4


Portugal: Extra Taxes for Holiday Rental Property Owners

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Property owners in Portugal face increased Municipal Tax on Onerous Property Transfers for turning homes into holiday rentals.

Read more

Rental Homes in Switzerland Drop 28% in 2 Years

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Discover the latest findings from the Swiss Real Estate Association on the significant decrease in available rental properties in Switzerland over the past two years.

Read more

Controlling personal finance and budgeting app

Australia: Unveiling Regional Queensland’s Lucrative Property Investment Potential

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Explore why Regional Queensland stands out in the most promising real estate markets in Australia, offering high rental yields, affordability, and robust capital growth prospects.

Read more

Real Estate Auction Sales Surge by 50% - Are Risks Worth the Rewards?

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Discover why real estate investors are flocking to auctions, but heed the warning of a property solicitor to avoid costly mistakes.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Potential Drop in Mortgage Rates in Spain Brings Good News for Homeowners

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Stay informed on the latest developments as variable rate mortgage rates in Spain may soon see a decrease, offering relief to homeowners. Euribor at 3.503%.

Read more

Foreigners Spend 39% More on Real Estate in Portugal Despite Recent Decline

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Discover why foreigners are still investing in Portuguese property, even after the end of key residency and visa programs.

Read more

Buy Land & Vacant Lots on Easy Monthly Payment Plans

Spain House Prices to Rise by Up to 3% by End of 2024

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Stay informed on the latest trends in Spain real estate market as house prices are projected to increase by up to 3% by the close of 2024.

Read more

Netherlands Rental Housing Supply Dwindles as New Contract Rents Skyrocket

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Discover the latest trends in the Netherlands rental market as supply decreases and rents for new contracts reach unprecedented heights.

Read more

Portugal’s Housing Market Sees 18.7% Decline in Sales

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Dive into the latest report by the National Statistics Institute revealing a sharp 18.7% drop in house sales in Portugal, hitting a low not seen since 2017.

Read more

Copyright © Ogusyis. All rights reserved. The Content may not be copied, distributed,  republished, uploaded, posted or transmitted in any way without the prior written consent of Ogusyis.