Quintessential Mortgage Group, LLC
NMLS # 979266

Despite mortgage rates reaching 7% new home sales see a slight increase indicating opportunity

April 29th, 2024

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Despite mortgage rates hitting 7%, there’s a silver lining in the housing market as new home sales see a slight uptick. Economist optimism prevails as the general consensus leans towards greater opportunity being found in new construction. In March 2024, approximately 693,000 new single-family homes were sold, marking an 8.3% increase compared to the previous year. The median sales price stood at $430,700, as reported by the U.S. Census Bureau. Amidst the challenges of low inventory, soaring prices, and escalating interest rates, homebuyers are turning their attention towards new development, drawn by the promise of increased supply and attractive incentives.

In the past half-year, the median price of a new home has risen by just 4% compared to existing homes. This increase contrasts sharply with pre-pandemic times when new homes were averaging a premium of over 40% compared to existing ones.

What can we expect?

Despite facing 7% mortgage rates, new home sales are on the rise, offering a glimmer of hope in the housing market. According to economiststhis surge signals “more opportunity” amidst challenging conditions. In March alone, approximately 693,000 new single-family homes were sold, marking an 8.3% increase from the previous year. The median sales price, as reported by the U.S. Census Bureau, sits at $430,700. Despite the ongoing challenges of low supply, soaring prices, and escalating interest rates, homebuyers are increasingly turning their attention towards new construction. The allure lies in the promise of greater supply and enticing incentives, making new homes a more appealing option in the current market landscape. Nobody can predict how the markets will move, but our experienced experts at QMG can assist with your financing needs. 

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