New home sales in the US are skyrocketing

Month-to-month increase was highest since early 2008

New York /
May.May 24, 2016 05:31 PM

From the Los Angeles website: The housing market is in rebound mode. In April, sales of new, single-family homes jumped nearly 17 percent since the previous month — the fastest increase since January 2008.

At a median price of $321,100, according to the Commerce Department, new home purchases totaled more than 600,000. This figure accounts for roughly a 10th of all home purchases.

“The fundamentals for new home sales are good, and getting better: more jobs, rising wages, more household formations, and very low mortgage rates,” Gus Faucher, deputy chief economist at PNC Financial Services, told the Wall Street Journal.

Existing home sales and construction numbers have also been strong, the former posting two straight months of gains, National Association of Realtors found last week. Meanwhile, about 780,000 single-family homes are projected to break ground this year.

But housing construction rate and sales have yet to catch up to pre-recession levels. Between 1990 and 2000, on average 716,000 new homes were sold every year. Buyers closed on 501,000 homes in the U.S. in 2015.

Home prices, in particular, have been on the incline because of low inventories.

“The drop in supply means sales prices for new homes may rise quickly throughout the remainder of the home buying season,” Trulia’s chief economist Ralph McLaughlin told the Journal. [WSJ]Cathaleen Chen


Related Articles

arrow_forward_ios
(Photo Illustration by Steven Dilakian for The Real Deal with Getty)
Borrowers are back: Mortgage applications rise
Borrowers are back: Mortgage applications rise
(Getty; Illustration by Kevin Rebong for The Real Deal)
Investor home purchases plummet 30%
Investor home purchases plummet 30%
1350 Ladera Circle with Elvis and Priscilla Presley (Realtor, Getty)
Elvis and Priscilla Presley’s Palm Springs honeymoon getaway sells for $6M
Elvis and Priscilla Presley’s Palm Springs honeymoon getaway sells for $6M
Gail Harmon with Tippity Wichity Island (Harmon, Curran, Spielberg & Eisenberg; ​​​​​Sotheby’s International Realty)
Mysterious island off Chesapeake Bay lists for $2.1M
Mysterious island off Chesapeake Bay lists for $2.1M
Willie Nelson and 3108 Greer Road in Tennessee (Getty, McArthur Sanders Real Estate)
Willie Nelson’s former “Hideaway” lists for $2.5M
Willie Nelson’s former “Hideaway” lists for $2.5M
House torn in half
Maryland couple up against squatters claiming their house
Maryland couple up against squatters claiming their house
(Illustration by The Real Deal with Getty)
What crash? Long Island home prices stronger than ever
What crash? Long Island home prices stronger than ever
Residential Real Estate, South Florida Real Estate, Florida, Home Sales, Home Prices
Investors eye Florida homes damaged by Hurricane Ian
Investors eye Florida homes damaged by Hurricane Ian
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...