{"id":5875,"date":"2017-08-24T00:00:00","date_gmt":"2017-08-24T00:00:00","guid":{"rendered":"https:\/\/amazingproperty.com.ng\/blog\/are-new-homes-pricing-out-too-many-buyers\/"},"modified":"2017-08-24T00:00:00","modified_gmt":"2017-08-24T00:00:00","slug":"are-new-homes-pricing-out-too-many-buyers","status":"publish","type":"post","link":"https:\/\/amazingproperty.com.ng\/blog\/are-new-homes-pricing-out-too-many-buyers\/","title":{"rendered":"Are New Homes Pricing Out Too Many Buyers?"},"content":{"rendered":"

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\"\"The prices of newly built homes are rapidly rising, which\u00a0<\/span>may have\u00a0caused\u00a0<\/span>the plunge<\/span>\u00a0in new-home sales last month, CNBC reports.\u00a0<\/span>Sales of newly built single-family homes tumbled 9.4 percent month over month in July to a seasonally adjusted annual rate of 571,000 units, the U.S. Department of Housing<\/a> and Urban Development and the U.S. Census Bureau reported Wednesday. This is the lowest reading for new-home sales since December 2016.<\/p>\n

The median sales price of a newly built home in July surged more than 6 percent compared to a year ago. The median sales price was $313,700 for a new home, a record price for any July on record. For comparison, the median existing-home sales price was $258,300 in July, according to the National Association of REALTORS\u00ae.<\/p>\n

The price premium for a newly built home compared to a similar existing home has more than doubled since 2011, according to data from John Burns Real Estate<\/a> Consulting.<\/p>\n

\u201cLong term, the new home median price has been mostly 10 percent to 20 percent above the existing home median since 1990,\u201d noted John Burns in a recent report to clients. \u201cSince 2011, however, new home prices have been at a 35 percent to 40 percent premium over resale prices. While the exact percentages aren\u2019t perfect due to \u2018apples and oranges\u2019\u00a0comparisons, our consultants have been confirming for years that new-home sales have been slowed by larger than usual new-home premiums.\u201d<\/p>\n

Buyer demand remains high in the lower end of the market, but that is where supply in the new-home market is the weakest, economists note.\u00a0<\/p>\n

\u201cThere is still no pickup in sales for homes priced below $300,000, and this is where most of the first time households would be shopping in,\u201d\u00a0Peter Boockvar, chief market analyst at The Lindsey Group, noted following the U.S. Census Bureau\u2019s new-home sales report release. \u201cThe housing industry needs a moderation in home price<\/a> gains in order to better compete with renting where rent increases are now moderating.\u201d<\/p>\n

Still, the builder\u2019s trade group says that home builders remain optimistic about rebounds in sales in the coming months. The National Association of Home Builders is also\u00a0<\/span>quick to note that new-home sales in July were still 9.2 percent higher than the same period last year, despite the month-over-month decrease.<\/p>\n

\u201cThe year-to-date growth shows that new-home sales continue to trend upward at a steady pace over the longer term,\u201d says Michael Neal, senior economist at the National Association of Home Builders. \u201cSteady economic growth and a healthier labor market suggest that the underlying economic fundamentals remain in place for a continued recovery.\u201d<\/p>\n

The inventory of new homes was 276,000 in July, a 5.8-month supply at the current sales pace.<\/p>\n

Across the country, new-home sales only posted an increase last month in the Midwest, rising 6.2 percent month over month. Meanwhile, new-home sales slipped 23.8 percent in the Northeast, 21.3 percent in the West, and by 4.1 percent in the South.\u00a0<\/p>\n

Source: National Association of Home Builders and \u201cHere\u2019s Why New Home Sales Tanked,\u201d CNBC (Aug. 23, 2017)<\/em><\/p>\n<\/div>\n

Realtors.org <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The prices of newly built homes are rapidly rising, which\u00a0may have\u00a0caused\u00a0the plunge\u00a0in new-home sales last month, … Are New Homes Pricing Out Too Many Buyers?<\/span>Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":5876,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"advanced_seo_description":"","jetpack_seo_html_title":"","jetpack_seo_noindex":false,"jetpack_seo_schema_type":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":true,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2},"jetpack_post_was_ever_published":false},"categories":[4],"tags":[1403,12908,543,215,248,127,617,344,258,204,2886,41,818,479,645,15282,15307],"class_list":["post-5875","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-opportunities-in-new-markets","tag-buy","tag-home","tag-home-buying-guide","tag-home-sale","tag-home-sales","tag-homes","tag-house","tag-housing","tag-new-home","tag-new-homes","tag-optimistic","tag-property","tag-real","tag-realtor","tag-renting","tag-ross","tag-ulta"],"jetpack_publicize_connections":[],"jetpack_featured_media_url":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/08\/regional_nhs_jul17.png?fit=620%2C255&ssl=1","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":5499,"url":"https:\/\/amazingproperty.com.ng\/blog\/new-home-sales-are-high-but-they-could-be-higher\/","url_meta":{"origin":5875,"position":0},"title":"New-Home Sales Are High, But They Could Be Higher","author":"Amazing Property","date":"July 27, 2017","format":false,"excerpt":"New-home sales inched up 0.8 percent in June, but sales would be higher if there were more new homes to sell. Sales of newly built single-family homes reached a seasonally adjusted annual rate of 610,000 units in June, according to a joint report released by the U.S. Census Bureau and\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/regional_nhs_jun17.png?fit=620%2C255&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/regional_nhs_jun17.png?fit=620%2C255&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/07\/regional_nhs_jun17.png?fit=620%2C255&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":3867,"url":"https:\/\/amazingproperty.com.ng\/blog\/buyers-rushing-toward-new-construction\/","url_meta":{"origin":5875,"position":1},"title":"Buyers Rushing Toward New Construction","author":"Amazing Property","date":"April 26, 2017","format":false,"excerpt":"Sales of newly built single-family homes increased for the third consecutive month, posting a strong showing to the spring selling season, the Commerce Department reported Tuesday. 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Read more: Buyers Are Being Drawn to\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":8643,"url":"https:\/\/amazingproperty.com.ng\/blog\/new-home-sales-bring-spring-disappointment\/","url_meta":{"origin":5875,"position":3},"title":"New-Home Sales Bring Spring Disappointment","author":"Amazing Property","date":"May 24, 2018","format":false,"excerpt":"Sales of newly built single-family homes fell in April\u2014a time that is usually the bustling springtime\u00a0home buying market. But builders remain upbeat and are quick to point out that\u00a0sales are still near a post-recession high, regardless of the latest drop.\u00a0 Sales of newly built, single-family homes dropped 1.5 percent in\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"Regional Nhs Apr18.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/05\/regional_nhs_apr18.png?fit=600%2C247&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/05\/regional_nhs_apr18.png?fit=600%2C247&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2018\/05\/regional_nhs_apr18.png?fit=600%2C247&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":6415,"url":"https:\/\/amazingproperty.com.ng\/blog\/new-home-supply-up-but-not-enough\/","url_meta":{"origin":5875,"position":4},"title":"New-Home Supply Up, But Not Enough","author":"Amazing Property","date":"September 27, 2017","format":false,"excerpt":"Sales of newly built single-family homes did little to break out at the end of summer. New-home sales plunged 3.4 percent in August to a seasonally adjusted annual rate of 560,000, the lowest sales reading since December 2016, the Commerce Department reported Tuesday. That's despite the fact that the number\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"regional_nhs_0817.png","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/regional_nhs_0817.png?fit=620%2C255&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/regional_nhs_0817.png?fit=620%2C255&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/09\/regional_nhs_0817.png?fit=620%2C255&ssl=1&resize=525%2C300 1.5x"},"classes":[]},{"id":1383,"url":"https:\/\/amazingproperty.com.ng\/blog\/buyers-are-being-drawn-to-new-homes\/","url_meta":{"origin":5875,"position":5},"title":"Buyers Are Being Drawn to New Homes","author":"Amazing Property","date":"February 27, 2017","format":false,"excerpt":"[ad_1] Sales of newly built, single-family homes increased 3.7 percent last month, reaching a seasonally adjusted annual rate of 555,000 units, the Commerce Department reports. \"We can expect further growth in new home sales throughout the year, spurred on by employment gains and a rise in household formations,\" says Robert\u2026","rel":"","context":"In "Opportunities In New Markets"","block_context":{"text":"Opportunities In New Markets","link":"https:\/\/amazingproperty.com.ng\/blog\/category\/opportunities-in-new-markets\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=350%2C200","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=350%2C200 1x, https:\/\/i0.wp.com\/amazingproperty.com.ng\/blog\/wp-content\/uploads\/2017\/02\/fb_reg_new_jan17.png?fit=600%2C222&ssl=1&resize=525%2C300 1.5x"},"classes":[]}],"_links":{"self":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/5875","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/comments?post=5875"}],"version-history":[{"count":0,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/posts\/5875\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media\/5876"}],"wp:attachment":[{"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/media?parent=5875"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/categories?post=5875"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/amazingproperty.com.ng\/blog\/wp-json\/wp\/v2\/tags?post=5875"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}