Expert Chaslau Koniukh
  • Companies
  • Global investment
  • Investors
  • Terminology
  • Economy
  • Stock Market
  • World exchanges
  • Tech and Marketing
New home sales in the U.S.-1
Economy

New home sales in the U.S. are falling: the reasons for the decline

01.07.2022
2 min read

New home sales in the U.S. fell short of experts’ expectations

According to official statistics, last month U.S. new home sales fell to 772,000 units. This figure was unexpected for the market, it is 2% lower than it was in the previous period. Analysts initially predicted the figure of 801 thousand. As a comparison: for the similar month of the previous year sales amounted to 832 thousand objects.
It should be noted that the indicator of sales in the primary market is very important for the analysis of the real estate market in the country as a whole. When there is an increase in the volume of homes purchased, then we can talk about the growth of spending by the American population. New homeowners spend more money on furniture, utilities, and repairs. Such spending contributes to the demand for a variety of goods and services. In addition, residential real estate accounts for more than 50% of the total construction segment in the U.S. All of these factors affect other sectors of the economy as well.
The rise of the real estate market was dramatically felt in early 2021 when the global economy began to recover intensively from the pandemic. The surge in demand was especially felt in the U.S. and Europe, where there is a shortage of supply.New home sales in the U.S.In the U.S., buyers’ main focus was on homes, fueled by low mortgage rates. As a result, demand for properties rose across the country, but supply was limited, contributing to record price increases in the market.
Secondary housing accounts for about 90% of the entire U.S. real estate market. The lack of variety of options for new construction is forcing buyers to actively purchase secondary housing, the number of which is declining rapidly. According to some experts, the available supply may be exhausted in the next few months.
As statistics from last year show, prices are rising in almost all areas of the United States. While previously the main demand was concentrated in large cities on the East and West Coast, now buy objects in the central regions. For example, home values in Tennessee increased by 10% over the year.
According to analysts, the increase in prices in the real estate market overrides the benefits of low mortgage rates, which also began to increase. The fact is that buyers now need more time to collect money for the down payment. This factor is quite critical for those who are buying their first home. Many investors are actively investing in the construction of new houses, but their cost is also likely to be high and affordable for a limited number of buyers. Meanwhile, the decline in new home sales suggests that a large number of Americans are postponing home purchases due to a lack of confidence in their income and rising costs.

Tags: Economy
0
Previous Post John DeJoria: from a homeless man to a billionaire Next Post The Crypto industry records record growth in cybercrimes

You Might Also Like

Distributed registry technology
Economy
Blockchain and distributed registry technology can be used by the US Treasury Department
07.01.2021
Alternative energy in Europe
Economy
Alternative energy in Europe is increasing generation volumes
08.12.2021
China's economic recovery
Economy
How China’s economic recovery is going: a review of the processes
26.02.2021
Lithuania_V
Economy
Lithuania’s economy is the strongest in the EU
19.09.2021
investment in saving the planet
Economy
EU urges private companies to invest in saving the planet
23.03.2022
recovery of the U.S. economy
Economy
U.S. economic recovery could drag on: Federal Reserve experts
16.02.2021

Recent Posts

  • 1Erik Penser
    Erik Penser: the ups and downs of the Swedish businessman
    30.03.2023
  • 2Royal Dutch Shell logo
    Royal Dutch Shell: the history of the British-Dutch company
    29.03.2023
  • 3discount window features
    Discount window: peculiarities of lending from the Federal Reserve System
    28.03.2023
  • 4LG Energy Solution
    LG Energy Solution invests in battery production expansion
    27.03.2023
  • 5troubled crypto exchanges-2
    SEC to closely monitor troubled crypto exchanges
    26.03.2023

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Financial expert Chaslau Koniukh: the stock market has a bullish trend 

Social media

Editor's Picks

Chaslau Koniukh
Analytics

American bankers from JPMorgan and Goldman Sachs advise to invest in gold: review by Chaslau Koniukh.

Press Secretary
17.08.2020
Expert Chaslau Koniukh
Analytics

Chaslau Koniukh on the analysts’ opinion on the key stake size change soon

Press Secretary
18.06.2020
expert Chaslau Koniukh
Analytics

Chaslau Koniukh: Internet trade market in Russia may reach 2.78 trillion rubles.

Press Secretary
30.05.2020
Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh
Analytics

Will the U.S. oil shale industry be able to quickly recover from the crisis: A Review by Chaslau Koniukh

Press Secretary
16.05.2020

Latest Posts

Japanese Central Bank
Japan’s Central Bank widened the range of bond yields
31.03.2023
Erik Penser
Erik Penser: the ups and downs of the Swedish businessman
30.03.2023
Royal Dutch Shell logo
Royal Dutch Shell: the history of the British-Dutch company
29.03.2023

Chaslau Koniukh

Expert Chaslau Koniukh

Chaslau Koniukh – an expert in marketing and project management, IT consulting, international investments, investor, financial analyst. A commodity trader, private consultant, entrepreneur, lecturer, author of several articles on the stock market.

Popular Posts

  • Skolkovo analysts: the Russian energy market is suffering losses
  • Businessman Chuck Feeney: the man who gave the world Duty Free
  • Field of activity of the American Monsanto Company Corporation
  • Financial expert Chaslau Koniukh: the stock market has a bullish trend 
  • Best stock exchanges in the world: India’s oldest stock exchange
Expert Chaslau Koniukh
  • Facebook
  • Twitter
  • Instagram
  • Biography

Chaslau Koniukh – an expert in marketing and project management, international investments, financial analyst.

Social media

Menu

  • Biography
  • Companies and corporations
  • Global investment
  • Investors and Entrepreneurs
  • Economy
  • Market terminology
  • Stock Market
  • World exchanges
  • Tech and Marketing
  • Analytics