New home sales in 2024 may hit lowest level since 2008

Year-to-date home sales volume is 48.6% YoY lower.

2024 may record the worst annual new home sales since 2008.

In August, private new home sales plunged 63.6% MoM and 47.2% YoY to 208 units.

August’s sales brought the year-to-date 2024 total of new homes sold to 2,668 units, a 48.6% YoY decline from 5,190 units during the same period in 2023.

CBRE estimates that 2024 will see 5,000-5,500 new homes sold, lower than the 6,241 record in 2023.

The expert, however, remains optimistic that home sales could improve in the coming months, believing pent-up demand is building and more attractive launches are on the horizon, pending interest rate cuts and a more favourable economic outlook.

PropNex shared a similar sentiment, saying a rate cut could "help to lift sentiment somewhat, and could also potentially encourage some property buyers on the sidelines to return to the market."

"The improved economic prospects and the still tight labour market are also supportive of the property segment. All things considered, we remain relatively optimistic about new home sales in the last few months of 2024," PropNex added.