New Home Sales Surge

According to the latest report from the US Census Bureau and the Department of Housing and Urban Development, newly constructed home sales jumped 5.7% month-over-month and 21.6% year-over-year to an annual pace of 552,000.

Many buyers are looking to the new homes market to make up for the lack of existing home sales inventory. National Association of Home Builders Chief Economist David Crowe explains:

"Today's report indicates the release of pent-up housing demand as the overall economy strengthens, consumer confidence grows and mortgage interest rates remain low. The housing market should continue to move forward at a modest but more persistent pace throughout the rest of 2015."

Regionally, the Northeast led the way with a 24.1% increase in new home sales, followed by the South (7.4%) and West (5.4%). Sales in the Midwest declined by 9.1%.

The inventory of new homes for sale currently sits at a 4.7-month supply down slightly from July (4.9) and significantly from August 2014 (5.4).

Buyers who purchased a new home were willing to spend more to get the amenities that they wanted. The median home price for new homes was $64,000 higher than existing homes in August at $292,700!

Approved applications for building permits increased 3.5% over July and 12.5% over this time last year. Permit applications are seen as a strong indicator of builder confidence in the market.

BOTTOM LINE

Buyer demand continues to outpace inventory of homes for sale. If you are thinking of selling your house this year, now may be the time to list before builders have a chance to replenish the supply of new homes.

Want to know more about New Home Sales? Check out this infographic!


304a3fc9 5d88 49f1 ba7b 9bbdf7c7e5e6 485cd253 e388 433a 83ad 23fa5c10dd3a 005a9578 62b8 4d8c aeee c02a44ae753e bd5a1851 dbeb 426d 8695 527836d98f80 4250a6b8 ebdd 42b4 accd a2595674641a 99540d5d ebba 48f7 9f3b db0ba9e1e19b f041a959 b8d8 4421 b541 e7c6e9ca3662 e50bb344 f9ba 49e1 b509 f4749f9f6bb7 0da019eb 4f47 4df0 853b afdaa0f9ebac 1742ec89 3514 4ba3 be6d e553089c9cf1 61aead2c c0b2 41eb ba31 bb493597ecd6 97b5f007 22b7 4626 901f fcc706c6dba8 c42b306a 4348 42f4 99fc 61a856487109 62e6c66f acff 4b20 bc67 00babbb09bae 6d6863a5 c09f 457d a717 22e930a6bff7 ae022a1b 2e88 463c bba7 1c06821ff06e 5b4900bf de51 43db ac11 c59386a71c2e 1d56c2a6 573b 40f7 a8c4 6177c7efd930 f02a47b4 1582 4bc4 90c1 111a2b5ff845 4195eaf8 56ad 49a0 aad6 f49a72f7f18a 1b213c57 b2f7 40ac 88c9 f338d0c9c277 3a9447ee 9405 400d 8867 c169036177db 07b691c0 1901 496a be3d df93ceb55f95