New construction has been an appealing alternative, attracting determined buyers frustrated by the historically low supply of existing homes. Still, affordability concerns remain.
The seasonally adjusted estimate of new homes for sale at the end of September was 435,000. This represents a supply of 6.9 months at the current sales pace.
The average rate for a 30-year, fixed-rate mortgage was 7.63% last week, according to Freddie Mac, and there are indications it could continue to climb.
There is an ongoing inventory and affordability crunch for First Time Homebuyers that has homeowners with mortgage rates of 3% or 4% reluctant to sell and buy another home at a much higher rate.
By comparison, there were 1.13 million existing homes for sale at the end of September, or the equivalent of 3.4 months’ supply at the current monthly sales pace.
Typically, the ratio of existing homes to new homes has been closer to 5 to 1, but lately it has been closer to 2 to 1, according to the National Association of Realtors.
If you want to avoid common NEW HOME BUYERS mistakes, including builders, then you would like access to only experienced and time proven Realtors, then we can help!
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