New Home Sales Rose 31 In September

New Home Sales Rose 31 In September

WASHINGTON (AP) – Oct. 26, 2016 – More Americans bought new homes in September, a sign that demand remains strong despite a shortage of properties on the market.

Recent hiring gains coupled with low interest rates have bolstered the market for new homes. But builders have largely struggled to keep pace with new construction, creating a shortage of listings for would-be buyers.

New-home sales advanced 3.1 percent last month to a seasonally adjusted annual rate of 593,000, the Commerce Department said Wednesday. The gains were concentrated in the Northeast, Midwest and South, as sales tumbled last month in the West.

So far this year, sales have increased 13 percent compared to the same period in 2015.

Sales have steadily grown from the depths of the housing bust and Great Recession over the past three years. Still, new-home sales still lag their historic pace of roughly 650,000 a year. If the sales pace for 2016 holds, sales will total roughly 566,000 at the end of this year.

The greater demand has caused narrower inventories of newly built homes. The market contains only 4.8 months' supply of new homes, down from 5.8 months a year ago.

The declining supply of new homes has modestly boosted prices, which have risen 2.7 percent to an average of $377,700.

Additional construction is unlikely to end the supply crunch. In September, housing starts fell 9 percent to a seasonally adjusted annual rate of 1.15 million.

Yet builders remain confident about their prospects. The National Association of Home Builders/Wells Fargo builder sentiment index released last week was 63 in October, down slightly from the prior month. Readings above 50 indicate more builders view sales conditions as good rather than poor.

Low mortgage rates are feeding much of this confidence. Mortgage buyer Freddie Mac said the average 30-year fixed-rate mortgage was 3.52 percent last week, down from a 52-week high of 4.01 percent.


Mindy Bloom Headshot
Author:
Phone: 305-332-2439
Dated: October 28th 2016
Views: 37
About Mindy: ...

Property Search








RSS Feed

View our latest blog posts in your RSS reader. Click here to access. RSS

Search Blog

Saved Properties

This is a list of your favorite properties. We will email you if a property is reduced or leaves the market.

Click 'Save' to add a property to this list.

Register / Login

New & returning visitors please enter your information to login.

By clicking 'register' you are agreeing to our terms of use & giving us expressed written consent to contact you.

Questions? Comments? Complaints?

This message will go directly to the head of our team.

Location & Address

Terrabella Realty
17820 West Dixie Hwy
North Miami Beach, FL
786-801-2691
305-402-0112