South Leads New-Home Sales in August
Author bio section
I am the author of this blog and also a top-producing Loan Officer and CEO of InstaMortgage Inc, the fastest-growing mortgage company in America. All the advice is based on my experience of helping thousands of homebuyers and homeowners. We are a mortgage company and will help you with all your mortgage needs. Unlike lead generation websites, we do not sell your information to multiple lenders or third-party companies.
New-home sales in the closing week of August are at a far higher level than expected. This is largely due to really attractive mortgage rates. Riding on a very high demand in the South, new single-family homes sold 4.8% more than the last month, corresponding to an annualized pace of 1 million. This is about 12.25% higher than the expectation of economists, according to the Bloomberg survey.
The Bloomberg data is the freshest in the line of data emphasizing the current momentum in real estate. Not only are the people being attracted by low-interest rates, but they are also taking into account the fact that they might have to work from home for a relatively long time. All this housing activity may however come to a halt if the Federal Fiscal package fails to arrest layoffs and unemployment.
The rate of sales from May-August has been highest since 1980. The South and the Northeast saw a rise in demand with the South leading with a 13.4% surge; something not witnessed since 2005. Housing inventory, though, remains a cause for concern, currently being at 3.3 months; the lowest in 57 years. The backlog figures are equally dispiriting. On 342,000 already sold properties, construction work has not yet started.
Related Posts
- 84The rate of homeownership in America has reached a level untouched since 2008. Spearheaded by the young population, the housing boom that had been stalled by the Coronavirus seems to have found its feet back. The Census Bureau puts the Q2 rate at 67.9%. This is the fourth quarterly increase…
- 83Redfin believes that all the good work done by low mortgage rates has been nullified by inventory shortage. Low mortgage rates had increased affordability but lack of homes has fueled up prices. "Low mortgage rates are motivating many people to purchase a home, particularly those who want more space to…
- 80Lack of housing inventory and buyer rush have created a demand-supply rift, resulting in high median prices for the Bay Area. For single homes, the Bay area median prices have risen by 8.6% (sitting at $950,000) in July, piggybacking on price surge in Contra Costa and San Mateo. The performance…
- 73Despite exceedingly low interest rates, a very limited number of borrowers pulled cash out of their houses in Q1. This led to a record-high for the dollar value of usable home equity, reports Integrated Technology firm, Black Knight. The mind goes back to the housing boom when homeowners tapped their…
- 64How much you can comfortably afford? Beyond pre-qualification, the pre-approval process is the best way to determine the number that's right for you. More than just a conversation, pre-approval entails full documentation and a credit check. The comprehensive review of all this information will help to determine early, what is…
