new home sales

Most New Homes Sold in a Decade

by
Green Escrow Services | Adding value to home

According to a new report, there were more new homes sold in July 2016 than in nearly a decade. The 654,000 annual rate represents a 31 percent increase over July 2015.

just as important, builders have begun construction on new housing units at a pace greater than 1 million homes a year every month since April of 2015. This more than doubles the low of 478,000 units in the spring of 2009.

Interestingly, the median sale price for new homes declined from $310,500 to $294,6000 in June. Analysts believe this is because more homes are being built at the lower end of the housing market which is certainly good news for young adults looking to purchase their first home.

New Home Sales Continue to Rise

by
Green Escrow Services | Adding value to home

As we mentioned a few weeks ago (Home Sales Rise In May) the new construction continues going strong with sales of single family homes increasing 2.2 percent, resulting in a seasonally adjusted annual rate of 546,000 units. New home sales in May 2015 were nearly 20 percent higher than in May 2014.

New home inventories remain tight at 206,000 which is approximately a 4.5 month supply at the current pace. This has pushed the average sales price of a new home to $337,000 as of May.

What’s next? Builders continue to build which would indicate a continual recovery of the housing market according to the National Association of Home Builders.

Home Prices Increasing Just About Everywhere

by
Green Escrow | Real Estate News

It certainly won’t come as news to anyone in the Bay Area but according to the National Association of Realtors®’ latest quarterly housing report the number of metro areas seeing double-digit price appreciation doubled in the first quarter of this year compared to last quarter. Once again it’s strong demand in combination with tight inventory that continues to push up housing prices throughout the country

Of the 174 metro areas that NAR tracks 148 saw an increase in the median xisting single-family home price. Nationwide only 25 areas recorded lower median prices compared to last year, while 51 metros saw double-digit increases, certainly a steep rise from the 24 metro areas in the fourth quarter of 2014.

According to analysts, by the close of 2014 home prices had “mostly moderated to healthier, more sustainable levels of growth” but prices are sharply increasing again with the median existing single-family home price in the first quarter now at $205,200 nationwide, up 7.4 percent from the first quarter of 2014.

Meantime, inventory remains tight with the average supply during the first quarter at 4.6 months – down from 4.9 months in 2014.

New Home Sales at 7-Year High

by
Green Escrow | Real Estate News

According to a new report by the U.S. Department of Housing and Urban Development and the Census Bureau, new home sales rose 7.8 percent in February month to month, reaching a seven-year high.

A sizable portion of this sales activity consists of existing home owners who are trading up to new construction while taking advantage of continuing low mortgage rates.

The inventory of new homes is at a 4.7-month supply at the current sales pace. Most economists consider a six-month supply a healthy pace for the sector.

Builder Confidence at a 9-Year High

by
Green Escrow Services | Adding value to home

The the National Association of Home Builders/Wells Fargo Housing Market Index reports that builder confidence in the new-home market rose to it’s mark int he last last nine years. September sas the fourth consecutive month that this builder confidence has risen.
NAHB Chairman Kevin Kelly was quoted as saying, “Since early summer, builders in many markets across the nation have been reporting that buyer interest and traffic have picked up, which is a positive sign that the housing market is moving in the right direction.”

This confidence measures builders’ perceptions of single-family home sales and sales expectations of the next six months as well as buyer traffic.

New Home Sales Climbed in August

by
Real Estate Growth

With the West and Northeast leading the way, sales of new homes climbed a whopping 18 percent to a seasonally adjusted annual rate of 504,000. This represented the most rapid ate since May 2008.

Across the United States new home sales have increased by nearly 33 percent in the last 12 months with median prices rising 8 percent to $275,000 nationwide.

The increase was even more pronounced in the West where new homes were purchased in August at a rate 50 percent higher than July. New homes sales in the West have nearly doubled in the past 12 months.

At the same time, analysts warned that the recent rapid price surge has put a considerable percentage of home out of reach for many American buyers.

Strong New Home Sales in May

by
Real Estate Growth

Data released June 24 by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau show that sales of newly constructed single family homes increased by a whopping 18.6 percent in May, 2014 reaching the highest rate since May 2008. David Crowe of the the National Association of Home Builders pointed out that 2014 started very slowly but that “as job creation continues, we can expect further release of pent-up demand and continued gradual growth in the housing recovery.”

The Northeast registered the greatest percentage increase in new-home sales with 54.5 percent while the Midwest only increased 1.4 percent. The West (and California) was second with a 34 percent increase. Meanwhile, inventory of new homes essentially remained flat as builders remain cautious about over construction. It’s estimated that there remains a 4.5 month supply if the current sales pace continues.