The housing market has remained strong despite the drop in sales of new single-family homes in the U.S. A recent report attributes the sustained numbers in the housing industry to low mortgage rates.
With buyers looking to spend less, the new-home inventory took quite a hit. Buyers opted for affordable alternatives and found more relief in manageable mortgage rates.
“New home sales slipped 0.4% last month to a seasonally adjusted annual rate of 694,000 units, with sales in the South dropping to the lowest in more than a year,” according to The New York Times.
“It was the third straight monthly decline in sales. November’s sales pace was revised down to 697,000 units from the previously reported 719,000. September and October sales were also marked down.”
In December 2019, new home sales under $200,000, which also happens to be the most popular market, only accounted for 10% of sales, according to the report.