US new home sales edged up 0.6% in June, but fell short of economist expectations, according to Bloomberg. Builders offered aggressive discounts to combat high prices and borrowing costs.
The median price of new homes dipped 3% year-over-year, but remains 23% higher than pre-pandemic levels. This has left many buyers priced out, despite mortgage rates near 7%.
Inventory levels have risen to their highest since 2009, while new construction has slowed due to the weak market. Regional sales vary, with the South and Midwest seeing gains, while the West saw a sharp decline.
Experts warn that without a significant drop in rates, demand won’t rebound soon, and the weak numbers are expected to impact second-quarter GDP growth.
Source: https://www.businessreport.com/article/burst-of-builder-incentives-fails-to-spur-a-turnaround-in-us-new-home-sales