New-home sales have dropped to their lowest point in seven months, as buyers continue to shun the market due to high prices and affordability concerns. The decline in new-home sales is more pronounced than expected, with builders offering discounts and incentives in an effort to attract potential buyers.
The high cost of homeownership, coupled with mortgage rates of 7%, remains a significant barrier for many individuals looking to purchase a new home. This has led to a prolonged period of weakness in the market, with no clear indication that it will soon reverse. As a result, sales of newly built homes are expected to remain depressed in the months ahead.
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Source: https://www.marketwatch.com/story/new-home-sales-plunge-to-a-7-month-low-as-buyers-struggle-with-high-prices-expect-more-weakness-in-the-months-ahead-25bee456