In September, new home salles fell a lot, however October showed that sales of new homes was up. This indicates that the whole housing market is more stable. According to the Associated Press, the Commerce Department said that new home sales were up 10.7 percent in October. This brought new homes sales to a seasonally adjusted rate of 495,000. In contrast, September saw a drop of 12.9 percent.
Sales of new homes has risen 15.7 percent year to date. This surge is occurring because of low mortgage rates and more employment in the United States. Real estate is still recovering from the 2008 financial crisis and the housing bubble. It has not quite reached the 52-year historical average of 655,200.
Sales of existing homes, as opposed to new ones, fell in October. The National Association of Realtors said on Monday that sales of existing homes fell 3.4 percent in October to a seasonally adjusted annual rate of 5.36 million. Overall, however, sales of existing homes have increased 3.9 percent from a year ago.
The number of listings on the market has dropped substantially. Like said before, a surge in the real estate market occurred once the economy was back on its feet. More people with jobs and more people with the finances to buy homes has caused supply to drop. The number of listings on the market has dropped 4.5 percent. Would-be buyers might be tempted to slow soon though. The Fed is expected to raise short term interest rates for the first time in almost ten years. Low mortgage rites have begun to rise in anticipation of the Federal Reserve’s December meeting.
The average, 30-year fixed mortgage rate was slightly under 4 percent this week, compared to 3.79 percent a month ago, according to mortgage buyer Freddie Mac.
So, what should you do with this information on new home sales? If you are considering buying a new or existing home, do not wait any longer. They are being snapped up quickly at these prices. If you have any questions about any of the great homes available in Miami, or about the market in general, contact one of our RE/MAX Paradise agents today.