October New Home Sales Drop 17.3% Amid Rising Mortgage Rates and Affordability Challenges

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New Home Sales Drop 17.3%

October saw a significant drop in New Home Sales, as higher mortgage rates and ongoing affordability challenges kept many buyers on the sidelines.

According to new data from the U.S. Department of Housing and Urban Development and the Census Bureau, New Home Sales of single-family homes fell 17.3% last month, with a seasonally adjusted annual rate of 610,000 units. That’s also a 9.4% decrease compared to October 2023. However, New Home Sales are up 2.1% year-to-date.

Experts say rising mortgage rates and elevated home prices are making it harder for prospective buyers to afford a home. Carl Harris, chairman of the National Association of Home Builders, notes that economic uncertainty and tighter budgets are contributing to the slowdown in New Home Sales activity.

Despite these challenges, New Home Sales remain a critical component of the market, especially in areas with limited existing home inventory. The median price for a new home in October rose to $437,300, a 2.5% increase from September, reflecting ongoing demand for New Home Sales despite affordability concerns.

Regionally, New Home Sales were up in the Northeast and Midwest, but down in the South and West, underscoring the uneven recovery in the housing market. As mortgage rates stabilize, experts are hopeful for a potential rebound in New Home Sales next year.

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Elon Musk Calls for CFPB Abolition

Billionaire Elon Musk has called for the dissolution of the Consumer Financial Protection Bureau, or CFPB. The comment came on Wednesday morning, following a post from Vivek Ramaswamy, the president-elect’s confidant, who argued that now is the time for significant structural reforms in the federal government.

Ramaswamy pointed to a “popular vote mandate,” a Republican-controlled Congress, and a 6-3 majority on the Supreme Court, claiming it’s the perfect moment to act. Musk, who has become a key ally of the incoming administration, retweeted Ramaswamy’s statement, adding, “It’s this time or never.”

Why should real estate agents care? The CFPB plays a crucial role in overseeing consumer protections in lending, including the rules governing mortgages and home loans. If the Bureau were to be dismantled or significantly weakened, it could lead to changes in how mortgage lenders operate, potentially making credit more accessible but also less regulated.

Musk’s call for its abolition signals a potentially major shift in U.S. financial regulation.

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Real Estate Firm Gives Back for Thanksgiving

Thanksgiving season, a local real estate firm is giving back to the community in a big way. Coldwell Banker Allied Real Estate, led by owner Marvin Shearin, served a festive holiday meal to about 50 homeless men, women, and children at the Bassett Center in Rocky Mount.

Though this was their first time organizing such an event, the team’s efforts were seamless, thanks to Shearin’s leadership and a collaborative spirit. He partnered with United Community Ministries, a local nonprofit that runs shelters and offers assistance to help people escape homelessness.

Shearin shared his motivation, saying, “We wanted to give back and help those who aren’t as fortunate as others.” Broker Hannah Jones echoed his sentiment, adding that it was a fulfilling experience to spread holiday cheer to those in need.

Real estate agents, take note: this event exemplifies the power of community engagement and giving back. Whether through charitable efforts or simply showing care for the neighborhoods you serve, such acts of service not only help those in need but also foster goodwill and strengthen connections in the community—something that can resonate with clients long after the holiday season.

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