Sales of new homes across the U.S. continued to gain steam as home builders and home buyers exude more confidence in the real estate market. New home sales were up 5.7 percent in one month, according to the latest September statistics.
Even more strikingly, the total home sales in September were up 27.1 percent compared to September of 2011. The year-over-year gains show sizable increases in sales which are no doubt contributing to pricing stability and price gains in many markets across the country.
From Money/CNN's article:
In another sign of a housing market recovery, new-home sales rose in September to the highest level in more than two years, according to a government report released Wednesday.
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The pace of home building hit a four-year high in September, according to a separate government report. The year-over-year sales improvement in September reached 27.1%.
The improvement in the market is part of a broader recovery in real estate, helped by a number of factors all coming together.
Mortgage rates are near record lows, pushed down by the Federal Reserve's decision to buy $40 billion in mortgages to spur greater economic growth. The low rates, coupled with years of weak home sales, have resulted in affordable housing prices. Recently, home prices have started to rise, which is attracting buyers who were waiting for prices to bottom out.
There has also been a drop in unemployment, a positive development for people looking for mortgage loans.
Foreclosures have fallen to a five-year low, reducing the supply of distressed homes available on the market.
"All the housing data has taken a turn for the better," said Steven Ricchiuto, chief economist for MSUSA. "Clearly mortgage rates at such a low level and what appears to be an increase in banks' willingness to make loans has boosted activity off the lows."
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Data Source: NWMLS - The Northwest Multiple Listing Service did not compile or publish this information.
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