US New Home Sales Encouraging Sign in the Housing Market
With the bubble that has been witnessed in the in the housing sector in America, people today may still be hanging in the balance over its current state. However, for a period not less than two months now, the housing market analysis and more so statistics have taken an astonishingly positive turn. Pretty discouraging figures of the dark past have finally let up, providing prospective buyers and homeowners with a sense of relief that seems to be inviting everybody to the sector.
Steady Recovery Of The U.S. Housing Market
In an overt dose of stimulating news, the United States housing market list showing measurable and sustained growth now entails over 84 metropolitan areas, fairly higher than 80 as of may 2012. This housing market analysis was carried out by the National Association of Home Builders. This number comprises not only the representatives from 32 states but also the District of Columbia.
According to David Crowe, the NAHB Chief Economist, the increase in recent times is encouraging as it shows that individual housing markets in the US continue to reclaim their footing. This point gives evidence that the recovery in the housing sector is surely taking root, from one region to the other. In the same footing, in the month of June, American builders started construction on the number of new homes that has not been witnessed since the peak of bubble in 2008, with housing starts leaping 7.0 percent in another heartening sign for the U.S. housing market.
Reduced Mortgage Rates and Increased Construction
According to the Commerce Department, in May, new constructions on private properties hit a seasonally adjusted yearly rate of 760,000 from about 711,000. This increase has gone on record as the biggest gain in seven months. Home sales are as well soaring as mortgages have become very cheap. Basing on the information from the U.S. Department of Commerce, on a 30-year loan, the average rate dropped to 3.67 percent this month, the rate which is seen as the lowest ever recorded since long-term mortgages were first initiated in the 1950s. In fact, people should as well seize this opportunity by refinancing at rates that are lower, in order for them to pay less on their loan interest.
Increased Home Sales
First American Improving Markets Index (IMI) identifies metropolitans that have witnessed improvement from their relevant troughs in employment, house prices and housing permits for the last six consecutive months. This index encompasses both the old and the newly added markets. The notable new entries comprise Springfield, Mass.; and Houston, Prescott, Ariz. As this happens, IMI indicated that the new single-family homes sales has risen 7.6 percent to a yearly rate of 369,000 housing units, after a virtually steady reading four months ago. Regionally, sales of new housing units moved up in the South by 12.7 percent and Northeast by 36.7 percent.
In April 2012, sales of home increased for primarily previously owned homes, signaling that the housing market is with no doubt stabilizing. The association of realtors (NAR), in April noted a 3.4 percent growth in sales of homes, amounting to an annual rate of 4.62 million. In addition, the amount of default, seizure notices sent to owners of homes and auctions dropped by 14 percent, indicating that with improved financial situations, people are today in a good position to hold onto their homes. Therefore, despite the dark past, the housing market analysis shows that there is a silver lining in the U.S. housing market, not only for now, but also for the days to come.
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