New home sales in the US fall sharply

New home sales in the US fell 11.3% to an annual rate of 619,000 units last month. Photo: Xinhua.

On June 26 local time, Reuters reported that the housing market is the sector that has been heavily affected by the US Federal Reserve's interest rate hikes since March 2022. The resurgence of mortgage interest rates has also reduced sales of used homes and new home construction.

“As it stands, this report will be further evidence to the Federal Reserve that monetary policy is constrained and it is time to start cutting interest rates in the coming months,” said Richard de Chazal, macro analyst at investment banking group William Blair.

New home sales fell 11.3% to an annual rate of 619,000 units last month, the slowest pace since November, according to the U.S. Commerce Department’s Census Bureau.

“New home sales are likely to continue to weaken until we see more significant declines in mortgage rates,” said Nancy Vanden Houten, chief economist at Oxford Economics.

In the Northeast, sales fell 43.8%. Meanwhile, sales fell 4.5% in the West last month and dropped 12% in the populous South. The Midwest recorded an 8.6% drop.

The median price of a new home fell 0.9% to $417,400 in May from a year earlier. Nearly half of the new homes sold last month were priced below $399,000.

A survey from the National Association of Home Builders (NAHB) last week showed the percentage of companies cutting prices to boost sales in June was at a five-month high.

Major homebuilders including Lennar and KB Home are offering incentives, according to Bloomberg. This strategy has helped keep orders high. Both companies reported increased profits in the second quarter. Builders are moving toward smaller homes, trying to fit buyers’ budgets.

“The inventory of new homes is likely to keep home prices from rising too sharply in the second half of 2024, making home buying less expensive and contributing to a moderation in inflation in 2025,” said Bill Adams, chief economist at Comerica Bank.

Source: https://laodong.vn/kinh-doanh/doanh-so-ban-nha-moi-o-my-giam-manh-1358335.ldo