Is it best time to buy new property in US?
Homebuyers bought more new homes in June, a bright spot in the polluted housing sector. New home purchases rose 7% month-on-month to a seasonally adjusted annual rate of 646,000 in June, the Commerce Department said Wednesday. The rise follows two consecutive months of decline. Economists surveyed by the Wall Street Journal have expected a turnover of 659,000.
The number of properties for sale in June would be 6.3 months at the current rate. That’s more than six months ago. The average selling price of a new home in June was $ 310,400, about the same as last year when the average selling price was $ 310,500. A year ago, new home sales rose by 4.5%.
Sales data may be volatile and subject to change. The increase in June was associated with an error rate of plus or minus 15.2 percentage points. Sales in May were reduced from an initial estimate of 626,000 to a seasonally adjusted annual rate of 604,000.
Home sales account for a relatively small share of all home sales in the US. About 90% of the purchased homes were owned.
The sale of existing real estate is moving in the opposite direction. Sales in this market fell 1.7% in June to a seasonally adjusted annual pace of 5.27 million, the National Brokers Association said Tuesday.
Low unemployment and rising wages have enabled more households to buy. At the same time, mortgage rates were depressed by the prospect of an interest rate cut by the Federal Reserve next week. According to Freddie Mac, the average interest rate on a 30-year mortgage last week was 3.8% after 4.5% a year ago.
Wednesday’s report showed that sales of new homes in the Northeast and Midwest fell to their lowest level since September 2015. In the west, however, sales rose sharply in June after plummeting in May. Sales in the south were roughly at the level of the previous month.