June 2024: New home Sales Fell Again Despite Easing Mortgage Rates

What happened: Newly built home sales decreased for the second consecutive month.
Why it matters: The surge in mortgage rates earlier this spring softened housing demand, leading to a slowdown in sales and an increase in both resale and new home inventory levels. But, well-priced and marketed listings are still selling relatively quickly.
Roughly 29% builders cut prices to bolster sales in June, up from 25% in May. However, the average price reduction in June held steady at 6% according to data from the National Association of Home Builders. More builders are dangling tempting sales deals to entice buyers, with 61% now offering incentives compared to 59% in May. With higher inventory, the use of incentives, such as rate buydowns, will likely persist to sweeten the deal for potential buyers.