"The sales of newly built homes reached a three-year high in August, surpassing economists' expectations and indicating a potential resurgence for homebuilders who have faced challenges due to weak demand and high interest rates. The increase in sales was widespread across regions, with the Northeast seeing a significant 72% rise. Despite a decrease in mortgage rates after August, builders have been proactively offering incentives and adjusting prices to attract buyers, with 39% of builders cutting prices in September, the highest percentage in over five years."
"The median sales price for new homes rose to $413,500, making new builds more affordable compared to existing homes. The supply of new homes decreased in August, with only 7.4 months of inventory available, down from 9 months in July, prompting builders to slow down construction. However, as builders cautiously navigate affordability concerns and plan for future projects, balancing supply and demand will be crucial for success moving forward."
Sales of newly built homes rose to a three-year high in August, exceeding economists' expectations and suggesting a potential recovery for the homebuilding sector after weak demand and high interest rates. The increase was widespread, led by a 72% surge in the Northeast. Mortgage rates eased after August, and builders responded with incentives and price adjustments; 39% of builders cut prices in September, the highest share in over five years. The median new-home sales price climbed to $413,500, improving affordability relative to existing homes. Inventory fell to 7.4 months from 9 months in July, prompting builders to slow construction while they balance supply, demand and affordability for future projects.
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