July 14, 2024

New Home Sales

New home sales
New home sales

 

The Commerce Department just reported that new home sales in July match the numbers seen in May, which were the highest numbers since April 2010.

New home sales have increased 25% in the past 12 months! So, even though they remain below the typical annual numbers, many believe this is another sign that the housing market is slowly recovering.

Obviously, the two main factors driving the new home sales recovery are today’s near record low interest rates for home mortgages combined with the fact that home prices are still well off their peaks sat in 2005.

Just yesterday, the national Association of Realtors reported that sales of previous occupied homes increased in July when compared to June. The same report showed that these resale home sales jumped approximately 10% in the past year.

As home sales increase, home prices also start to rise. In another report, it was shown that nationally, home prices increased 2.2% in May when compared to April. That home price increase was the second straight increase after seven months of pretty much flat or declining home prices.

In light of this good news for housing, US home builders have applied for the largest number of building. Permits in almost 4 years last month.

For further information, you can directly view the goverment’s pdf new home sales report.

 

New Home Sales