According to the National Association of Home Builders (NAHB) mortgage interest rates are starting to stabilize. The Federal Reserve is predicted to tighten the leash when it comes to bond market deals.
The last part of 2022 saw a seasonally adjusted rate of newly built single-family homes at 632,000 as of October 2022. This was a 7.5% increase from the month before but was still down 5.8% from October 2021. Census data shows that the pace of sales slowed. Ready-to-occupy inventory is rising but the inventory of homes that are not started is dipping because of the weaker buyers’ demand.
October 2022 also so a dip of 5.9% in the sales of existing homes. According to the National Association of Realtors, October saw a seasonally adjusted annual rate of 4.43 million. Unfortunately, this is the lowest pace since December 2011.
The decrease is also reflected by the falling home prices. The S&P CoreLogic Case-Shiller national home price index fell at a seasonally adjusted annual growth rate of 8.7% in September, the third consecutive monthly decline. The decline looks like it will continue in 2023 due to low traffic numbers.
There is some good news when it comes to custom home building. The third quarter of 2022 reported 59,000 total starts which is a 5% increase from the third quarter of 2021. Now is a great time to buy if you are in the market for a new home. Contact your local realtor who can help you with the home-buying process.