NEWS: U.S. New Home Sales Dive Almost 30 percent Year-Over-Year in April

Although the competition has been fierce during these past months, studies show that the New-Home sales has finally started to dive. 

The National Association of Home Builders' Chief economist, Robert Dietz, shares some specific indicators about this issue. 

"The April drop for new home sales is a clear recession warning," said NAHB Chief Economist Robert Dietz. "The median price of a newly-built single-family home increased 19.7% year-over-year. The combination of higher prices and increased interest rates are generating a notable slowing of the housing market. While the nation needs additional housing, home sales are slackening as tightening monetary policy continues to put upward pressure on mortgage rates and supply chain disruptions raise construction costs."

The sales of newly built, single-family homes in April fell about 16.6%, which is an quite interesting fact due to the increasing demand and saturation on the overall housing market.

"The volume of signed sales contracts significantly declined in April as the cost of purchasing a home increased in 2022 as interest rates surged higher," said Jerry Konter, chairman of the National Association of Home Builders. "Higher construction costs fueled by rising material prices and supply-side constraints along with limited existing home inventory are pricing many potential home buyers out of the market."

More details on a recent article by The World Property Journal.