New Home Sales Surge to Highest Point Since 2007
Posted by Florida Realty Marketplace on
The Department of Housing and Urban Development (HUD), in conjunction with the U.S. Census Bureau released its report on New Residential Sales for November 2017 on Friday.
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The sales figures were seasonally adjusted and came to an estimated 733,000, an increase of 17.5 percent (plus or minus 10.4 percent) from October’s revised rate of 624,000—representing the highest level since July 2007. Additionally, figures increased 26.6 percent (plus or minus 16.6 percent) of November’s estimate a year prior, which totaled 579,000.
New houses sold in November had an average price of $318,700; the median sales price came to $377,100. The report also figures that, at the end of November on a seasonally adjusted level, there are…
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Expectations are rising for home price appreciation, according to the 2017 Q4 Zillow Home Price Expectations Survey. Home prices have continued to rise, and showed no signs of slowing.
The National Association of Realtors (NAR) recently released its Existing Home Sales report—discovering that October 2017 reported the strongest pace since June, but low supply continues to lead to fewer closings on an annual basis for the second month in a row.
As home prices rise and tight inventory continues, the current market has made it more challenging for American’s to reach their goals of homeownership, especially for low-to-median-income borrowers and first-time homebuyers.
The November RE/MAX National Housing Report recently released, reporting that October home sales increased 2.5 percent year-over-year—keeping 2017 prices ahead of 2016.
The U.S. is embarking on its ninth year of economic expansion and Fannie Mae is predicting economic growth rebound. According to their Economic & Strategic Research Group’s June 2017 Economic and Housing Outlook, second quarter economic growth will rebound to 2.9 percent from last quarters 1.2 percent. Consumer spending growth is expected to return to its traditional role as the biggest contributor to economic growth, picking up to 3.1 percent this quarter from 0.6 percent in the first quarter. Fannie Mae said moderate growth is expected to continue into next year, however uncertainty in fiscal and monetary policy makes the forecast a little difficult.
Encouraging news about consumer earnings could lead to more home sales in an already healthy growth market, even if the labor market is less certain.
The Bureau of Labor Statistics (BLS) will release the first employment summary of 2016 on Friday, February 5 (technically, it’s the second employment summary released this year, but the first one that covers part of 2016 since the last one covered December). Employment growth for October through December was solid, averaging job gains of 284,000 per month for the three months.