In a sign that is considered unexpected as well as a good sign for the construction industry, the sale of new homes purchased by Americans was finalized at the fastest rate in over 10 years. The Commerce Department is reporting that new-home sales last month rose to a seasonally adjusted annual rate of 685,000 and is a 6.2 percent monthly increase. This is the highest sales volume for new construction since October of 2007.
As reported earlier, because of the lack of existing homes many Americans are now looking for new construction to suit their need for housing. The shortage of housing has also increase the sales price of a new home. The average sales price of new construction homes increased 13.6 percent year over year to $400,200.
There is a 4.9 months to clear the supply of houses on the market. This is the least amount of housing since July 2016 and down from 5.2 months in September. A six-month supply is viewed as a healthy balance between supply and demand.
Leading the way on new construction sales is in the Northeast. New single-family homes sales increased by a whopping 30.2 percent in the Northeast. This is also the highest levels since October 2007. It is now being suggested that the three month increase in new US home building along with an increase in existing home sales there is a rebound in the housing market. Housing for the year has been considered hampered by the shortages of housing, hurricanes in the South as well as the unavailability of skilled labor and land. The new report may indicated that housing is gaining momentum going into 2018.
If you are interesting in purchasing a new construction and in need of property management than Blue Harbour Property Management can be of assistance. We are a full-service NYC property management company servicing Queens, Brooklyn, Manhattan and the Bronx.