With the sellers’ market being so strong with low inventory, I've been keeping my lookout for new and existing home sales at the forefront for any of you who may be thinking of buying in the near future. It seems that new homes might just be the booming business right now in home sales.
There's good news for home builders and maybe for the economy as a whole: Sales of new homes increased nearly 7 percent in April to a seasonally adjusted annual rate of 517,000, according to the U.S. Census Bureau.
That’s still a below-average rate historically, but it’s up 26 percent compared with April 2014. Plus, home builders were relieved that sales bounced back in April after slumping in March.
“Today’s numbers are consistent with other data we’ve seen recently and indicate a continuing, gradual improvement in the housing market,” said David Crowe, chief economist for the National Association of Home Builders.
Nationally, the median sales price for a new home rose to $297,300 in April, up from $285,500 in March.
New homes, however, represent only a fraction of the housing market. The good news is that existing home sales topped 5 million for the second consecutive month. Sales could be higher if more homes were on the market, Realtors said. But that doesn't mean it won't turn around, and relatively soon…
This supply shortage, plus higher home prices, could spur demand for more home construction.
Check out the original article on Puget Sound Business Journal for more information.
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