New home sales hit slight roadblock
Posted on Monday, October 27, 2014 at 9:47:19 AM
The trends for the U.S. housing market have been mostly positive for consumers, especially with the sharp decrease in residential financing rates. However, one statistic - new home sales - has been a bit subpar recently.
According to the U.S. Census Bureau and the Department of Housing and Urban Development, new single-family homes sold at a seasonally adjusted annual rate of only 467,000 this September. That rate of growth is only 0.2 percent higher than August and 17 percent above the same time last year.
According to HousingWire, many experts believe that this recent shift won't become the new normal. Even so, future growth must be tempered against current market conditions.
"The supposed momentum in sales seen in August was severely deflated after revisions, with September's minimal rise suggesting limited activity in the housing market at the end of Q3," Lindsey Piegza, chief economist for Sterne Agee, told the news source.
She added that many consumers are facing debt and a lack of savings, which is making it challenging to purchase new homes.
On the bright side, slower purchasing activity has increased the amount of available properties. With a higher inventory comes more options, so homebuyers won't be competing in a seller's market for some time.