Good News For Used Home Sellers?

New-home sales fell 16.6% in April from March to a seasonally adjusted annual rate of 591,000, the lowest level since April 2020. Rising mortgage-interest rates have made homeownership more expensive for buyers.

One could interpret that as the middle and upper class opting for a used home instead of a new custom built.  It could also be builders scaling back their investment to hedge their bets on much higher rates to come.  If that's not enough, one wonders how many second-home buyers have decided to wait, or rental home investors decided to switch to flips over BRRRs.

In further reading, supply of existing homes is still below demand.  Meanwhile, elsewhere in the world, there still aren't a lot of good places to park your money if you have a pile of under-performing cash.

Image by Paul Brennan from Pixabay