The survey which was conducted by John Burns Real Estate Consulting, a firm based in Irvine, California found that home builder sales fell 4 percent from July to August, a month in which sales typically rise 2 percent, The Wall Street Journal reported Wednesday. Which in a survey, 47 percent of home builders indicated they were rasising prices, down from 64 percent in July.
In August the survey found that 48 percent of builders indicated they had kept prices unchanged in the month, while 5 percent had indicated they had lowered their prices. Which is the largest percentage in that category since March 2012 the Journal said.
Interest rates are up nearly 1 percentage point since May, reaching 4.57 percent in August, which price hikes have affected the volume of business according to analysts.
“The fact that we saw a 4 percent decline [in sales] does suggest there is more to it than just normal seasonality,” said Jody Kahn, a senior vice president at the consulting firm.
“The price increases are crazy,” Keller Williams Realty real-estate agent Jody Kahn said.
“I’ve seen some builders that have raised their prices $100,000 over a three-month period. That has a big impact on people buying new construction,” Kahn said.
(All information gathered from FloridaRealtors.org)