New Home Sales Rise in May
We always love to report when there is good news in the real estate industry. While the market has been uncertain at best over the past several years, we might be seeing the light at the end of the tunnel. If you’re looking for signs that the real estate market is improving, look no further than numbers from May’s new home sales. According to the National Association of Home Builders sales of new single-family homes went up substantially last month, especially in comparison with March and April. Many buyers tend to make home purchases in the summer, an ideal time to move, but even for the “busy season” these home sale numbers are definitely something to write home about. New home sales increased to around 369,000; compared to April’s numbers, that’s a 7.6% increase and, on an even more impressive note, it’s a strong 20% improvement over 2011!
One reason for this jump could possibly be a national drop in mortgage rates. With borrowing costs and interest rates at a low, home buyers are feeling more comfortable taking the plunge of purchasing a new home. Are low mortgage rates inspiring you to buy your first new home? Homes.com can help you out through our Mortgage Center! There, you can get “pre-approved” and use one of our many mortgage calculators to get an idea of how much your monthly mortgage payments might be on a particular home. You can also check out more financial resources on our blog.
Though the numbers are still far away from where they should be, they are definitely on the upswing which proves that there is still life and fight left in the housing market. So which areas in the country are fairing best? According to the National Association of Home Builders, the boost in home sales is mostly coming from the Northeast and the South. Sales in the Midwest and West remained basically unchanged month to month. However, we’re just now getting into the swing of the busy summer and things could change. It will be interesting to see what June’s numbers have to offer!