Many experts have been calling upon home builders to ramp up construction to help with the lack of existing inventory for sale.
For the past few months, Irvine new home sales have surged, with the recent total coming in at the highest since October 2007. Irvine is a great example of a city with brand new housing inventory cropping up quickly!
Irvine new-home builders include Brookfield Residential, California Pacific Homes, Irvine Pacific, KB Home, The New Home Company, Richmond American Homes, Shea Homes, Taylor Morrison, Toll Brothers, TRI Pointe Homes and William Lyon Homes.
The estimates from the US Census Bureau and Department of Housing and Urban Development show that recent sales were 31.3% higher than this time last year, and 12.4% higher than last month, at a seasonally adjusted annual rate of 654,000.
Zillow's Chief Economist, Svenja Gudell, echoed the reaction of some as she commented:
"July('s) new home sales data was a surprise, but a welcome one. For years, the market has been practically begging builders to both ramp up their efforts overall and to put more focus on serving the less expensive end of the market. Today's data confirms both are happening in earnest."
I heard similar reports when I attended the Zillow Premier Agent Forum a couple of months ago.
This is a photo of me spending a second or two with Zillow Group CEO Spencer Rascoff.
The National Association of Home Builder's (NAHB) Chairman, Ed Brady, didn't seem as surprised:
"This rise in new home sales is consistent with our builders' reports that market conditions have been improving. As existing home inventory remains flat, we should see more consumers turning to new construction."
New home sales hit their highest mark in over 9 years. Buyers are out in force to find a home that fits their needs. Many are turning to new construction, as the inventory of existing homes has not been able to keep up with demand.
Irvine has some incredible new housing developments. I would love to discuss these new options with you and your family.