New home sales dropped for the third consecutive month in the U.S., while the housing supply hit its highest level since 2009.
Government data show that single-family home sales dropped 0.6 percent month over month to an annualized pace of about 618,000, while the median sales price went up 9.7 percent to $326,800, according to Bloomberg.
The numbers show that the market for new homes is cooling off overall, and the report goes against prior data that showed home sales in February were rebounding.
Borrowing costs and property prices are continuing to increase at a faster pace than wages, which is making it harder for new and younger homebuyers to afford a house. Other factors making life difficult for first-time homebuyers include the new tax law and tight credit conditions. [Bloomberg] – Eddie Small