However, mortgage applications for new home purchases increased 4% between July and August, the strongest pace of sales in three months.
“Homebuilders are still benefiting from very low inventory of existing homes for sale, which has driven more buyers to consider new construction,” Bright MLS Chief Economist Lisa Sturtevant said. “But with mortgage rates elevated and home prices high, affordability is a growing concern for home buyers.”
The median sales price of a new house sold in August 2023 was $430,300, while the average sales price was $514,000. The seasonally‐adjusted estimate of new houses for sale at the end of August was 436,000. At the current sales rate, this represents a supply of 7.8 months.
The inventory of unsold new homes is at its highest since December, Holden Lewis, home expert at NerdWallet said, and builders will be motivated to offer incentives to get them sold.
“Look for a resurgence of mortgage-rate buydowns, in which the sellers give buyers a break on the monthly payments for the first one to three years,” he added.