New home sales dropped last month
Sales of new homes fell in May following a strong April. The figures from the HUD and Census Bureau shows a 6 per cent drop to 551,000 units on a seasonally-adjusted annual rate basis.
However, despite slipping month-over-month, the longer trend remains positive according to the National Association of Home Builders.
“At an annual pace of 551,000 units, new home sales are up relative to the first few months of 2016 as well as last year,” said NAHB Chief Economist Robert Dietz. “The sales market continues to make overall gains despite month-to-month volatility.”
The inventory of new homes for sale was 244,000 in May, which is a 5.3-month supply at the current sales pace. The median sales price of new houses sold was $290,400.
Sales of new homes were driven by the Midwest while the other three major regions declined.
Mortgage rates edge higher
The average rates of US mortgages edged higher but remained near their lowest in three years this week.
Freddie Mac’s Primary Mortgage Market Survey for the week ending June 23 shows that a 30-year FRM averaged 3.56 per cent, up from 3.54 per cent last week.
The average rate for 15-year FRM’s was 2.83 per cent, up from 2.81 per cent; the rate for 5-year ARM’s was unchanged at an average 2.74 per cent.
Why a yellow kitchen could boost a home’s selling price
Homes with colourful kitchens may be a good thing when it comes to selling. Research from Zillow has found that those homes with a wheat yellow or sage green kitchen can sell for up to $1,400 more than those decorated in plain white.
Zillow chief economist Dr Svenja Gudell commented: “To get the biggest bang for your buck, stick with colors that have mass appeal so you attract as many potential buyers to your listing as possible. Warm neutrals like yellow or light gray are stylish and clean, signaling that the home is well cared for, or that previous owners had an eye for design that may translate to other areas within the house."