New-home sales are rising
Steady job rates and low mortgage rates across the United States set August up to be the highest hitting month for new-home sales in seven years. Americans were purchasing new homes at a faster pace than they had in seven years during August this year.
According to the Commerce Department on Thursday new-home sales grew to 5.7% last month, or a seasonally adjusted rate of 552,000. This is the strongest pace the real estate market has seen since February 2008, right near the beginning of the Great Recession. According to the government’s revised figures, July saw a 12 percent increase, also a huge jump.
The reasons for this push in sales comes from nationwide healthy hiring as well as smaller price increases of homes. New-home sales for the year went up 22%.
“Housing has been an economic bright spot this year and activity in the new home construction market remains solid,” said Michelle Girard, an economist at RBS Securities.
Homebuilders also show high optimism in recent surveys, so hopefully that indicates that construction will catch up to demand quickly and soon.
Federal Reserve Chair Janet Yellen said last week that she expects the housing market to keep improving as more people find jobs and younger Americans increasingly move out on their own.
“We are envisioning further improvement in the housing market,” Yellen said. “It remains very depressed.”
There are less homes for sale on the market right now than would usually be the case. At the end of August there were only enough homes to last 4.7 months at our current pace of sales. Usually, there are enough homes to last about six months.
Right now, mortgage rates are still very low, making this an ideal time to buy when you find the home that is right for you. Here at RE/MAX Paradise we offer many beautiful and unique properties in the amazing city that is Miami. Don’t hesitate to contact us today!