The housing market continues to improve with the arrival of spring. More individuals are gaining interest in applying for a U.S. home mortgage and fulfilling the American Dream.
The housing market continues to improve with the arrival of spring. More individuals are gaining interest in applying for a U.S. home mortgage and fulfilling the American Dream. The U.S. Census Bureau and U.S. Department of Housing and Urban Development reported the sales of newly constructed single-family houses increased by 2% in February.
A press release from the National Association of Home builders responded to the report and emphasized the implications of this rising interest in newly constructed houses.
“The February bounce back in sales is in line with our builders’ reports that the housing market continues to recover at a slow but steady pace,” said Ed Brady, chairman of the NAHB and a home builder and developer.
Sales rise for single-family homes. When compared on a month-over-month basis, the total sales of single-family homes that were recently constructed increased slightly to 512,000 homes, which indicates there is a rising demand for real estate.
However, on a year-over-year basis, home sales dipped 6.1%. This may be due to the climbing interest rates for home mortgages in the U.S.
When broken down on a regional basis, home sales rose the most in the West. Transactions increased 38.5% from January’s estimate. The South, Midwest and Northeast experienced drops of 4.1%, 17.9% and 24.2% respectively.
Available new homes were at a 5.6-month supply at the current sale pace, equating to approximately 240,000 properties. The median price of new homes sold in February was $301,400.
“While builders contend with industry headwinds such as labor shortages, relatively low mortgage interest rates and solid job growth should keep the housing market moving ahead as we enter the spring buying season,” noted NAHB Chief Economist Robert Dietz.
House hunters can rejoice. With a 5.6-month supply of homes available, interested buyers can feel more confident they will find a home that matches their family’s needs when it’s time to start their search. The busy buying and selling season will bring more availability, which also suggests better affordability.
When more consumers enter the housing market, it bodes well for the future of the industry. The spring season will likely be successful with historically low rates, more available inventory and higher demand.