Sales of new single family houses in the United States increased by 14% September as buyers tried to beat a potential hike in interest and mortgage borrowing rates despite record high home prices, the US Commerce Department said on Tuesday
WASHINGTON (Pakistan Point News / Sputnik - 26th October, 2021) Sales of new single family houses in the United States increased by 14% September as buyers tried to beat a potential hike in interest and mortgage borrowing rates despite record high home prices, the US Commerce Department said on Tuesday.
"Sales of new single family houses in September 2021 were at a seasonally adjusted annual rate of 800,000," the Commerce Department said in a statement. "This is 14 percent above the revised August rate of 702,000."
Earlier in the day, the S&P CoreLogic Case-Shiller US National Home Price Index said its 20-city indicator showed a 19.7% year-over-year gain in August, barely changed from the 20.0% reading in the previous month.
The median selling price for existing-homes in the United States rose 17.8% in July from a year earlier to hit a record high of $359,900, according to the National Association of Realtors.
The Commerce Department noted, however, that demand for single-family homes were down 17.6% from September 2020, indicating that affordability remained a factor for some buyers despite concerns about an impending hike in interest rates and possibly mortgage rates.
Economists polled by US media had anticipated sales of 760,000 new single-family homes in September.
"The mini buyers' strike in US housing is likely over," economist Adam Button said in a post on ForexLive, referring to last month's demand spike despite prices being where they were.
Dire housing shortages in the United States since the financial crisis of 2007-2008 and last year's coronavirus outbreak have sent home prices to record highs.
Despite the grossly inflated market and a huge mismatch of demand versus supply, many buyers remain hopeful of locking in before the Federal Reserve raises interest rates sometime next year in what would be its first hike since the coronavirus outbreak in March 2020.
