New home sales and prices in Houston have hit a “peak,” according to HomesUSA.com CEO Ben Caballero.
“New home sales peaked in May, while their average sales price appears to be peaking now,” said Caballero. “While inventory continues to increase, its pace has slowed, and the August supply is now five months, down from six months in July.”
“Houston builders are resisting downward pressure on prices by increasing Realtor bonuses and commissions,” Caballero added. “The wave of cancellations was related to higher interest rates and does not appear to be a factor for now. However, this could change if interest rates increase again.”
Data from the HomesUSA.com New Home Sales Index shows that the pace of new home sales increased as well. Average days on the market decreased from 60.05 days in July to 59.41 in August.
The average cost of new homes also increased, rising to a record high of $426,115.