US home sales jump to a nearly 9-year high

Borrowing costs are down, demand is up

New York /
Aug.August 23, 2016 02:02 PM

Home sales shot up last month, nearly hitting the highest level seen in the past nine years.

Sales reached the fastest pace seen since October 2007, jumping 12.4 percent to an annualized pace of 654,000, Bloomberg reported. New data from the Commerce Department shows strong housing demand in the U.S., especially in the south, reduced inventory and a spike in entry-level homes sold. At the same time, median sales price of a new house dropped 0.5 percent from July 2015 to $294,600.

Brett Ryan, an economist at Deutsche Bank in New York, told the website that the increase can be attributed to the fact that “interest rates are low, credit continues to ease and the consumer is in decent shape given the jobs market.”

“You’re seeing finally that builders are responding with more supply, and that’s been one of the big problems in the current cycle,” Ryan said.

In April, pending home sales across the nation hit a 10-year high, due to low interest rates and job growth. The sales index for homes under contract rose to 116.3 in April, the highest level seen since February 2006. [Bloomberg] — Kathryn Brenzel 


Related Articles

arrow_forward_ios
Robert Frank with 1021 Park Avenue and Ben Lambert with 28 Laight Street (Getty, Google Maps)
Who’s buying and selling Manhattan homes? Last month’s notable deals
Who’s buying and selling Manhattan homes? Last month’s notable deals
Clockwise from top left: 48 Bedford Avenue in Williamsburg; 7601 4th Avenue in Bay Ridge; 55-25 58th Street in Maspeth; 42, 44 and 46 21st Street in Flatiron; 59-20 Van Doren Street in Corona (Photos via StreetEasy; Google Maps)
Mid-market investment sales off to strong start in 2021
Mid-market investment sales off to strong start in 2021
Jonathan Miller: Resi markets are facing a "chronic lack of inventory"
Jonathan Miller: Manhattan’s sales market is an “outlier” — and not in a good way
Jonathan Miller: Manhattan’s sales market is an “outlier” — and not in a good way
Moonbeam Capital Steven Maskin. (iSock, Moonbeam)
Private equity exec picks up $9M condo at Trump World Tower
Private equity exec picks up $9M condo at Trump World Tower
Residential sales surged in November (Getty)
South Florida home sales soar in November, led by luxury properties
South Florida home sales soar in November, led by luxury properties
Single-family saves the day. Q3 resi sales up in South Florida
Single-family saves the day. Q3 resi sales up in South Florida
Single-family saves the day. Q3 resi sales up in South Florida
(Photo courtesy of Winkworth)
London’s so-called skinniest home hits the market
London’s so-called skinniest home hits the market
(iStock)
Déjà vu: New home sales hit 14-year high in August
Déjà vu: New home sales hit 14-year high in August
arrow_forward_ios

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

Loading...