The Real Estate Market is Looking Up! 

After years of struggling, many Americans are back on track to buying a home. Factor in steady job gains and low mortgage rates and Americans have the perfect recipe for buying their dream house. In fact, this past August new homes were purchased at the fasted pace in 7 years. 

Home sales surged 5.7% in August alone, which is the fastest pace since February 2008! This new interest in buying homes can be attributed to the smaller price increases for new homes. These new homes are finally starting to push up sales that were hammered hard during the Great Recession in 2008.

Even though the recession ended in 2009, the housing market was slow to turn around. This year is one of the first years that we are really seeing a huge change in the housing market.  In this past year alone sales have soared nearly 22%!

Surveys Show...

Surveys also show that developers and homebuilders have more optimistic outlook for this year than that of the last decade. There are more people looking to buy than there are new homes, so the hope is that these contractors will build new homes and help jumpstart the housing market.

The more houses being built will not only help the housing market, but could also help the economy by providing jobs for builders and their teams. If you also factor in the demand for building material and landscaping services, the economy could have a much-needed boost.

A Stabilized Market

Another reason why the new housing market has seen this much-needed increase this year is because home prices have finally begun to stabilize. Last year home prices jumped a whopping 10.7% in the final quarter compared to a year earlier. This year, there was only a 0.8% price increase from last year’s June to April quarter. 

The median price for new homes is currently $292,700, just $600 more than it was last month. This plateau in pricing has meant that there is soon to be more demand than there is supply. There were just 216,000 new homes for sale at the end of August, enough to last 4.7 months at the current pace of sales.

With low mortgage rates keeping these homes affordable for buyers, it looks like houses are only going to be in higher demand than ever before.