US New Home Sales Fall in July to Six-Year Low
Summary from the AllSides News Team
Sales of newly constructed homes in the U.S. fell 12.6% in July to 511,000 units, according to the Commerce Department.
The drop in sales, which marks the lowest level recorded since January 2016, marks another indicator that the housing boom is "going bust" as increasing mortgage rates cause purchases to decrease. While median home prices jumped nearly 9% in July from the previous month to $439,400, some analysts are predicting that the drop in consumer spending rates will result in less competition and more price cuts.
Coverage was prominently featured across the spectrum, especially in business-related outlets. Some reports noted that the data suggested that the Federal Reserve's tightening of monetary policy to slow demand and consumer spending achieved "some desired results" in the housing market. Other outlets noted that the increase in home values slowed activity by "edging prospective homebuyers out of the market."
Featured Coverage of this Story
From the Center
U.S. new home sales tumble to 6-1/2-year low; prices still high
Sales of new U.S. single-family homes plunged to a 6-1/2-year low in July as persistently high mortgage rates and house prices further eroded affordability.
The report from the Commerce Department on Tuesday added to a stream of weak housing data, and suggested that the Federal Reserve's aggressive monetary policy tightening campaign to slow the economy in order to tame inflation was achieving some desired results in the housing market. But with house prices remaining elevated amid a critical shortage of previously owned properties, a total housing market collapse is unlikely.
From the Right
US new home sales plunge for sixth straight month to lowest level since 2016
Sales of new U.S. homes plunged more than expected in July to the lowest level in six years as rising mortgage rates and the relentless increase in home values slowed activity by edging prospective homebuyers out of the market.
New single-family home purchases tumbled 12.6% to a seasonally adjusted annual rate of 511,000 units, the Commerce Department reported on Tuesday. It marked the sixth consecutive month of declines. Economists surveyed by Refinitiv expected new home sales – which account for a small percentage of total sales – to fall 2.5% last month....
From the Left
New home sales fall 12.6% in July as rising prices take a toll
New home sales plunged in July as high prices and mortgage rates pushed buyers to think twice about closing the deal.
Sales of newly constructed homes fell by 12.6% in July from June and were down 29.6% from a year ago, according to a joint report from the US Department of Housing and Urban Development and the US Census Bureau. It was the second consecutive month of declines.
Only 511,000 new homes were sold last month, at a seasonally adjusted annualized rate, down from a revised 585,000 in June. That’s...
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