The Real Reason Why New Home Sales are Rising? Housing Market Forecast 2022-2023

New home sales in August surged in the US 28% which far exceeded analysts expectations in 2022. There are many reasons why new home sales increased, especially in an environment of rising mortgage interest rates and home price declines. One of the reasons new homes increased was buyers are trying to get ahead of rising interest rates.

The forecast for the housing market in 2022 and 2023 is for prices to decline until interest rates stabilize and start to fall again. New construction sales rose because new home builders were offering substantial incentives to buyers to close as soon as possible. Also many of these homes were actually placed under contract 9-12 months previously, when interest rates were still low and these buyers had already locked in their interest rate.

The expectation for new home sales in 2023 are that they will decline, mostly because new home builders are building less and less new homes because of labor shortages and rising costs to borrow so that they can continue to build new homes.

Todd and Oana are real estate agents in Las Vegas and own Nevada Realty Solutions, a boutique real estate company.

Todd Miller
todd@nvrs.com
702-218-2819

Oana Miller
broker@lasvegastodd
702-285-4207

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