New home sales are on fire

Existing home sales in July fell 16.6% from a year prior but new home sales are up 31.5% 

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Location, location, location
Welcome to the Know the Difference Minute for Wednesday, August 23rd.
The three most important factors in buying or selling a property are location, location, and location. Higher mortgage rates may be trumping those three, though.
Existing home sales in July fell 16.6% from a year prior. Higher mortgage rates have not only made buying more expensive, it’s also keeping people from selling. People will still sell to right-size, take a job opportunity, or move to—or from—family. But higher rates have reduced the incentive to sell if the owner has a really attractive rate already.
New home sales however are on fire, rising 31.5% from a year ago. Rates matter for new home sales, but typically not as much since home builders can be more flexible with pricing and financing. Existing home-owners have the option to stay put while home builders aren’t in the business of just sitting there.
I’m Brian Jacobsen, Chief Economist at Annex Wealth Management. That is your Know the Difference Minute.