The real estate market of the United States has seen a marked shift in recent years as demand shifts from existing to new home sales. According to industry expert Logan Mohtashami, this demand has been pushed in large part by the current economic climate and changing preferences among homebuyers.
The main causes of this shift are changes in borrowing practices, taxes, and real estate preferences. New home sales have increased 20% year over year, thanks to looser borrowing restrictions, increased competition between lenders, and lower interest rates. This offers buyers the chance to invest in property affordably and with fewer financial burdens. At the same time, existing home sales have seen a 20% decrease due to tax changes that make flipping houses less profitable and environmental preferences that have turned buyers away from existing homes built with older construction standards.
•Loose borrowing practices, increased competition between lenders and lower interest rates driving new home sales
•Tax changes and environmental preferences driving decrease in existing home sales
•Increase of 20% for new home sales, decrease of 20% for existing home sales
You can read this full article at: https://www.housingwire.com/articles/new-home-sales-defy-recession-calls/(subscription required)
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