43 Urban Village Live + Work New Construction written by: Frank Vigliotti, Realtor®, Global Sales…
Ft Lauderdale Real Estate | South Florida Realtor | Henri Frank Group
New home sales in the U.S. have increased 3.6% in July of this year and reaches the two-year high that was last met in May 2012. This recent growth has indicated another signal of constant improvement in the U.S. housing market.
Based on information from the Commerce Department, new home sales have improved a
seasonally adjusted annual rate of 372,000 which is the same amount seen in May. This rate has not reached this point since April of 2010.
A representative from the brokerage firm, BTIG LLC stated that this information from the Commerce Department is one of the many signs that validate the continual improvement of the housing market.
Over the last year, new home sales have increased 25% which would be an amazing fact if the housing market in the United States wasn’t at record lows. New home sales still haven’t reached the level that most economists deem as as a healthy which is the annual rate of 700,000.
One of the main reasons that the housing market has been making slow but consistent improvements is partly due to the fact that the prices have declined quite a bit. Housing costs have decreased to about one-third of the rates seen in the thriving housing market in 2006 and mortgage rates have declined close to the lowest they’ve ever been.
Data from the National Association of Sales notes that home resales have increased this July from June. Home resales has increased 10% this year compared to last years sales. There are many other housing reports that confirm that the market is showing consistent signs of growth. The average prices for homes have increased in the United States and showed a 2.2% influx in prices in May from April. This represented the the second consecutive month that prices increased after seven consecutive months of declining or stagnant prices.
Home developers have become hopeful due to the fact that they’ve experienced more activity from potential home buyers. Studies on the confidence of home builders show that they’ve become more hopeful this year than numbers seen in the last 5 years.
This confidence has influenced home builders to apply for the largest amount of building permits in July than we’ve seen over the last 4 years. The amount of new construction has increased moderately in July from June. This is awesome news since the number of new homes constructed was at the highest it’s been in over 3 years in the month of June.
Although new home construction on accounts for a small percentage of the housing market, these new development have a massive impact on the market and the economy in general. Data released from the National Association of Home Builders confirms that on average, each new home developed can attribute to about 3 employment opportunities annually and leads to roughly $90,000 in tax income.
Although we’ve seen some consistent growth, the housing market still has a long journey on the way to a full recovery. Some economists predict that home resales will increase close to 8% this year to roughly 4.6 million which is great but still close to 1 million sales below the 5.5 million annual sales pace that represent a healthy housing market.
One factor that continues to hinder the growth of the housing market is the fact that many potential homebuyers are still struggling with the issue of qualifying for home loans. Recent reports from the Federal Reserve indicate that lenders have enforced stricter standards for mortgage loan qualifications
Another aspect that hinders home sales in the U.S. is that inventory for newly built homes has declined. The amount of new home on the market in the last month has decreased to 142,000 which is the lowest amount seen since 1963.
Many economists consider a six-month supply of new homes a healthy market. As of now, July’s supply of homes would take roughly 4.6 months to dissipate.
With offices in Fort Lauderdale, Wilton Manors, Hillsboro Shores and Plantation, The Henri Frank Group at Remax Preferred seeks to keep their buyers, sellers and investors of South Florida real estate informed of the International, National, State and Local real estate market. Email email@example.com, call 954-604-9999 or go to their website at https://henrifrank.com.
For knowledgeable, experienced, professional Realtors, contact Henri Vezie and Frank Vigliotti of the Henri Frank Group today. We are a group of Realtors who know the market and can assist you with all your real estate needs.
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