Number of new home sales in the U.S. 2000-2023, by financing type
The number of new homes sold increased in 2023, after falling in 2022. Considering that the vast majority of purchases were financed through a conventional mortgage, it is of no surprise that the rising mortgage interest rates are one of the main factors for transactions slowing. In fact, more buyers were willing to buy cash in 2023 than in 2021.
How has the increase in sales activity influenced house prices?
When demand outweighs supply, prices tend to increase. In the United States, the recent spike in house sales has contributed to average house prices growing at a higher pace than in recent years. Furthermore, the rising house price-to-income ratio indicates that homes are becoming less affordable.
Has the coronavirus (COVID-19) pandemic affected Americans’ homeownership plans?
Overall, the coronavirus (COVID-19) pandemic has positively influenced the homeownership plans of people in the U.S. According to a survey conducted among American adults, 28 percent of Millennials were more interested in buying a home due to the coronavirus pandemic, compared to 13 percent who were less interested.
