Number of New Houses on the Market Highest Since January 2009

Bloomberg writer Sho Chandra reported yesterday that, “U.S. purchases of new homes fell more than estimated in September to the weakest pace since December 2016, adding to signs that a lack of affordability is crimping demand, according to government data Wednesday.

“The results fell below all forecasts in Bloomberg’s survey of economists and showed downward revisions for the prior three months, signaling that the market ended the quarter on a weak note.

“A gauge of homebuilder stocks erased gains and was down 1 percent as of 1 p.m. in New York, bringing its decline this year to 35 percent.”

“U.S. New-Home Sales Tumble to Lowest in Almost Two Years,” by Sho Chandra. Bloomberg News (October 24, 2018).

The Bloomberg article added that, “The results are the latest signs that the housing market is losing momentum. While a strong job market and healthier finances signal demand is unlikely to suddenly collapse, potential buyers are increasingly constrained by rising property prices, higher mortgage rates and a scarcity of affordable listings.”

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