U.S. home prices gained 18.5% in August from a year earlier, slowing from July’s record pace of 19.2%, as rising mortgage rates crimped the ability of buyers to engage in bidding wars.
New-home sales surges in September and the median U.S. price rose to a record as house-shoppers rushed to take advantage of low mortgage rates.
Some of the housing provisions of the Build Back Better bill that seemed destined for the chopping block are now back in play, including some form of down payment assistance.
Construction data shows outlying counties of smaller metro areas experienced a 20.7% growth rate. Somewhat more dense small metro core areas posted a smaller 15.7% annual growth rate.
The median existing home price in September was $352,800, an increase of 13% from a year earlier, and prices rose in every region, NAR said.
Homeowners who live in coastal areas will be paying more to offset the effects of climate change as the Federal Emergency Management Agency subsidizes fewer premiums and raises rates.
“Consumers feel it’s a bad time to buy a home but a good time to sell – and they continue to cite high home prices as the primary reason,” said Doug Duncan.
Biden's first-time homebuyer tax credit is likely to be one of the first casualties as Congress pares down its $3.5 trillion reconciliation bill, according to a report.
An index measuring signed contracts for existing homes rose 8.1% in August, NAR said in a report on Wednesday. That’s more than five times the 1.4% gain expected by economists.
Sales of existing homes declined 2% in August after rising for two consecutive months as buyers balked at soaring prices and the supply of homes on the market remained tight.
