New Homes in High Demand as Existing Home Sales Decline

Surging mortgage rates have caused existing home sales to decline, while sales of new homes have increased due to a shortage of available properties. The higher mortgage rates are pricing some potential buyers out of the market. The low supply of homes has led to rising prices for existing homes and multiple bidding wars for new homes. Builders are offering discounts and designing smaller houses to keep prices in check, and there is increased interest in lower-priced housing options like condos and townhomes. The shift has also sparked increased interest in lower-priced housing options, such as condos and townhomes, as potential buyers look for more affordable options.