New home sales hit 4-month low

Dated: April 28 2022

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MARKETS & ECONOMY

New home sales took an 8.6% hit in March as rising home prices and mortgage rates made homebuyers think twice before purchasing a new home, according to new data released Tuesday

BY LILLIAN DICKERSON Today 8:02 A.M.

New home sales took a hit in March 2022 as rising home prices and mortgage rates made homebuyers think twice before purchasing a new home, with sales reaching their lowest rate since November 2021.

New single-family home sales were down 8.6 percent from February’s rate of 835,000 to a seasonally adjusted annual rate of 763,000, which was also down 12.6 percent from March 2021, according to data released Tuesday from the U.S. Census Bureau and Department of Housing and Urban Development.

“A combination of factors has contributed to this decline including rising interest rates and rising prices, which have both hindered purchasing power for buyers, and a decline in single-family starts which has left inventory levels low,” RCLCO Principal Kelly Mangold said in a statement emailed to Inman.

“Due to the shortage of construction labor, buyers may be more hesitant to purchase a fixer-upper understanding that the cost and timeline of renovations may be extended, making a turn-key new construction home more appealing,” she said.

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