Home Sales at Highest Levels in Six Years
Sales of new U.S. single-family homes jumped to a
six-year high in May. This was the latest indication that the housing market
was reviving from a seasonal rut.
The Commerce Department reported that sales surged 18.6 percent when adjusted annually, at a rate of 504,000 units. That was the highest level since May 2008 and the biggest increase since January 1992.
While it points to momentum in the new home sales market, these figures are typically volatile due to their small sample size.
Meanwhile, U.S. sales of existing homes also rose more than expected in the second quarter, and the stock of properties for sale was the highest in more than 1.5 years.
The National Association of REALTORS® (NAR) reported that existing home sales increased 4.9 percent to an annual rate of 4.89 million units. This increase was the largest since August 2011.
The housing recovery stalled in the second half of 2013 as interest rates increased and prices surged among a dwindling supply of available properties for sale.
Progress has been slower for first-time buyers, who are deemed crucial for a strong housing market. As first-timers were priced out or ran up against tighter lending practices, others became as competitive as possible in their search by seeking preapprovals up-front.
In May, first-time buyers accounted for only 27 percent of the total home sale transactions. Economists and real estate professionals consider a 40 to 45 percent market share of first-time buyers ideal.
The good news is that rates remain at some of their lowest levels of the year and will offer relief for any buyer who is looking for a better deal on a dream home.
The Commerce Department reported that sales surged 18.6 percent when adjusted annually, at a rate of 504,000 units. That was the highest level since May 2008 and the biggest increase since January 1992.
While it points to momentum in the new home sales market, these figures are typically volatile due to their small sample size.
Meanwhile, U.S. sales of existing homes also rose more than expected in the second quarter, and the stock of properties for sale was the highest in more than 1.5 years.
The National Association of REALTORS® (NAR) reported that existing home sales increased 4.9 percent to an annual rate of 4.89 million units. This increase was the largest since August 2011.
The housing recovery stalled in the second half of 2013 as interest rates increased and prices surged among a dwindling supply of available properties for sale.
Progress has been slower for first-time buyers, who are deemed crucial for a strong housing market. As first-timers were priced out or ran up against tighter lending practices, others became as competitive as possible in their search by seeking preapprovals up-front.
In May, first-time buyers accounted for only 27 percent of the total home sale transactions. Economists and real estate professionals consider a 40 to 45 percent market share of first-time buyers ideal.
The good news is that rates remain at some of their lowest levels of the year and will offer relief for any buyer who is looking for a better deal on a dream home.
Comments
Post a Comment