While analysts expected the housing market to take a hit from the recent hurricanes that plagued the United States, no one quite saw it being this bad. According to Reuters (Via Business Insider):
Sales of new U.S. single-family homes unexpectedly fell in August, hitting their lowest level in eight months, the latest indication that the housing market was slowing. The Commerce Department said on Tuesday new home sales decreased 3.4 percent to a seasonally adjusted annual rate of 560,000 units last month, which was the lowest level since December 2016. July’s sales pace was revised up to 580,000 units from the previously reported 571,000 units.
There are several contributing factors; “shortages of homes available for sale, skilled labor and suitable land for building. Rising prices for building materials are also undercutting housing.”
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The cooling housing market may begin to take its toll on home values. As demand dips, the prices will likely come down to compensate for the lack of sales. Whether it is a price decrease or some other impetus to drive the housing market back up will remain to be seen.
To find our more, go to businessinsider.com.
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