February 2023 saw another rise in new home sales making it the third month in a row. Those in the industry say that the steadier mortgage interest rates and the historically low inventory of existing homes on the market are part of the ploy. The US Department of Housing and Urban Development and the US Census Bureau reports that newly constructed home sales rose 1.1% in February from January. This is still 19% lower than the figures reported a year ago. New single-family home sales were reported at a seasonally adjusted annual rate of 640,000 which is also up from 633,000 in January. Again, down from the 790,000 reported in February 2022. 
Mortgage rates are easing but are climbing once again due to the volatile inflation. In February it was reported that the average mortgage rate for a 30-year fixed-rate loan went up a half percentage point in February. The new home median price also went up from January’s $472,500 to 438,200. February reported a supply of 8.2 months at the current sale rate.
“Existing home inventory has been very low in many markets, which has given new home sales less competition,” explains Kelly Mangold of RCLCO Real Estate Consulting.
As for demographics,” Millennials experience a baby book in the later portion of the pandemic that was especially pronounced in college-educated women, because the rise of remote/hybrid work made juggling the demands of family and work more attainable. With this, demographic drivers continue to push high-earning households into a life stage where they may be looking to upsize, and the market appears to be reacting,” informs Mangold.
