New Home Sales Jump to Highest Level Since May 2023 as Lower Mortgage Rates Drew Buyers In

Sales in the Northeast surged a whopping 22%

The numbers: Sales of newly built homes in the U.S. surged to the highest level in 17 months as lower mortgage rates brought home buyers back into the market.

Sales of newly built homes in the U.S. rose 4.1% to an annual rate of 738,000 in September, from a revised 709,000 in the prior month, the Commerce Department reported Thursday.

The number is seasonally adjusted, and refers to how many homes would be built over an entire year if builders continue at the same pace every month.

The pace of sales was at the highest level since May 2023.

Down Payments Are Dropping From Historic Highs

Homebuyers might be relieved to hear that down payments are finally dropping from recent historic highs.

A new report by Realtor.com® shows that the median down payment homebuyers plunked down from July to September of 2024 was an average of 14.5%—or $30,300.

That’s a $2,400 savings from last quarter’s historic peak of $32,700 (14.9%).

So why are down payments dropping? Fewer homebuyers are out there, which gives those who do brave today’s market more leverage, according to Realtor.com senior economic research analyst Hannah Jones.

“The annual decline in down payments is the result of less buyer competition in the third quarter,” Jones says. “Easing demand and increasing inventory gave buyers more flexibility last quarter, which led to slightly lower down payments.”

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Pennsylvania Median Home Sales Price Dips Slightly, More Listings Hit the Market

The Pennsylvania Association of Realtors®’ September housing market report shows home prices have come down a bit, but the good news is there are more homes on the market.

In September, the median sales price for residential properties fell slightly to $295,000, down 3% from August. However, the price was up 9% compared to September last year.

At the same time, housing inventory showed signs of improvement, with the number of active listings rising 3% compared to August. There were nearly 38,800 listings in September, which is up more than 28% compared to January of this year. In fact, the inventory last month was the highest it has been since all of 2023.

Nearly 70% of Homeowners Feel Secondhand Embarrassed by Neighboring Yards

Sixty-nine percent of homeowners have experienced secondhand embarrassment from their neighbors’ yards, according to a survey from Top Rail Fence.

While many homeowners take pride in maintaining their yards and increasing curb appeal, some are less concerned with their home’s exterior appearance. Of the 869 homeowners surveyed, a large majority expressed negative feelings toward their neighbors’ home upkeep and maintenance habits.

When asked how they felt about the appearance of their neighbors’ yards, respondents said:

Bothered (36%)
Frustrated (34%)
Embarrassed (34%)
Admiration (29%)
Empathetic (22%)
Envious (20%)
None of the above (21%)

Generation E(xpat)? More Gen Z, Millennials Moving Abroad

In a recent survey of over 1,000 Gen Z and millennial workers, 25% said they were actively planning on leaving the United States to live abroad within the next five years, according to hiring company Howdy.

The findings also reported that 87% were planning on becoming digital nomads—people who work remotely while traveling. Of those, 53% were planning on finding a job that supported the lifestyle, and 34% already had one.

The top five reasons for leaving the United States included:

Looking for a change of scene (67%)
Enjoy traveling (65%)
Cost of living in the U.S. (51%)

How To Avoid Buying A Haunted Home

In most states, homeowners and realtors don’t have to disclose information about a house’s history, including if someone died there, even if it was a murder.

This means a house could have a bad reputation, meaning it is a stigmatized property, and it could be sold without the buyer ever knowing.

These events can lower the value of a house by up to 25%, and it can take twice as long to sell compared to similar homes.

“Imagine buying a house and only finding out later that something tragic happened there,” said Roy Condrey, CEO/President of Simply Put Solutions, Inc. and www.DiedinHouse.com. “Wouldn’t you rather know before making such a big decision?”