New US Home Sales , Grew in September.
Even though mortgage rates are hovering around 8%, sales of newly-built homes surged 12.3% in September, CNN reports.
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Compared to a year ago, sales increased 33.9%.
Existing home sales dropped 20% during the same time period.
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Higher mortgage rates are causing homeowners to stay put instead of selling their current homes and buying new ones at higher rates, CNN reports.
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With one more Fed interest rate hike expected for the year, interest rates are not anticipated to drop any time soon, Kelly Mangold of RCLCO Real Estate Consulting, via statement.
A low supply of homes is making new construction more appealing to buyers.
The constraints in the housing market have created a significant amount of pent-up demand, as more and more households are living in homes they may have outgrown and are deciding to buy despite current market conditions.
, Kelly Mangold of RCLCO Real Estate Consulting, via statement.
The South is considered “a region that continues to outperform due to availability of land, population and job growth, and a relatively lower cost of living,” according to Kelly Mangold of RCLCO Real Estate Consulting.
Usually, there are about 5 existing homes for sale for every 1 new home, but as of late, that ratio is more like 2 to 1, the National Association of Realtors says
