It’s another sign the U.S. housing market is in a full recovery. This is really shaping out to be the real McCoy. Today, U.S. News and World Report noted that the month-to-month change in housing sales was the highest increase since July 2008. And, U.S. News also reported that the Commerce Department said that new home sales rose 16% in January, the largest increase in 20 years.
This is great news for home sellers. Many people who have been waiting to put their homes on the market because prices were low and chances of a quick sale were bleak, will now list their home. Which, of course, is great news for home buyers, who will soon have a larger choice of homes to choose from in their areas. I recently spoke with a real estate agent friend of mine who told me that homes in her area are moving off the market in days, offen with multiple offers. Inventory of good housing is low and prices are rising. That said, there are still plenty of great deals out there in most parts of the country. Now, back to the story.
Here’s a snippet from the article:
U.S. new-home sales jumped in January from the previous month to the highest level since July 2008, a sign that the housing recovery is accelerating.
The Commerce Department said Tuesday that new-home sales rose nearly 16 percent in January to a seasonally adjusted annual rate of 437,000. The percentage increase was the largest in nearly 20 years. And December’s sales were revised higher to 378,000 from 369,000.
Steady job creation and near-record-low mortgage rates are spurring more Americans to buy houses. Sales of previously occupied homes rose to the highest level in five years last year.
At the same time, the number of previously occupied homes for sale is at a 13-year low. That shortage creates more demand for new homes. Builders began construction on the most houses and apartments in four years last year.
The supply of new homes for sale was unchanged last month at 150,000. That’s barely above August’s total of 143,000 — the smallest supply of new homes on records dating back to 1963.
At the current sales pace, it would take just 4.1 months to exhaust the number of new homes for sale, the lowest in eight years. Low inventories should encourage more construction.
Spring is coming soon and so is the home buying season. Mortgage rates are still near record lows, so it’s defintely a great time to get started. Isn’t it exciting?
Oh, and you can read the full article here.
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