New-home construction posted a 12.2% month-over-month increase in August, thanks in large part to a significant jump in multifamily building.
Mark Development wants to convert the former Santander Bank at 1314 Washington St. into 50 multifamily housing units and a restaurant.
The median price of a new home sold during the month was up 5.9%, however, according to figures from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
The pace of new multifamily construction, however, jumped, according to the U.S. Census Bureau and the U.S. Department of Housing and Urban Development.
New-home inventory rose to 444,000 homes in May from 437,000 homes in April, the U.S. Census Bureau and the U.S. Department of Housing and Urban Development reported.
New-home completions rose during the month, however, with the increased inventory representing a rare bright spot in an otherwise gloomy government report.
The rate of new single-family home sales fell 16.6% from March’s revised number, while the median sales price jumped to $450,600 from March’s revised median house price of $435,000.
“Builders are responding to higher mortgage rates and are chasing rising rents, with fewer homebuyers and more renters being forced to renew their leases.” — NAR Chief Economist Lawrence Yun
Low inventory and rising interest rates have reduced prospective homebuyer purchasing power.
Affordability and supply-chain issues continued to weigh on the sales of new single-family residences.