The Department of Commerce reported July sales of new homes dropped by 2.40 percent over June to a four month low. Analysts noted that although July's reading of 412,000 new homes sold fell short of expectations and June's reading, the new homes sector is volatile and subject to change. June's reading of 406,000 new homes sold was revised to 422,000 new homes sold; expectations were based on the original reading. Three of four regions posted a slower rate of growth for home prices with only the South posting a gain. The average price of a new home in the U.S. rose to $269,800, which is 2.90 … [Read more...]
New Home Sales Remain Elevated Into Q4 2012
Sales of newly-built homes took a small step lower in October, but remain strong. According to the Commerce Department, New Home Sales slipped 1,000 units last month, falling to 368,000 units on a seasonally-adjusted, annualized basis. The final reading fell short of Wall Street expectations, and the government revised downward its initial findings from August and September by 2,000 units and 20,000 units, respectively. A "new" home is a home that is considered new construction. Furthermore, the number of new homes for sale nationwide ticked higher to 147,000 -- the highest reading … [Read more...]
What’s Ahead For Mortgage Rates This Week : October 29, 2012
Mortgage markets ended the week slightly better last week. Wall Street took its cues from U.S. economic data, from developments in Europe, and from the Federal Reserve, moving mortgage rates lower in Arizona and nationwide. Pricing for both conforming and FHA mortgage rates improved between Monday and Friday, with the majority of gains occurring late in the week. The timing of the gains explains why Freddie Mac's weekly mortgage rate report showed the average 30-year fixed rate mortgage rate rising this week when, in fact, it did not. Because Freddie Mac conducts its mortgage rate … [Read more...]
New Home Supply Remains Firmly In “Seller’s Market” Territory
The U.S. housing market appears headed for a strong close to 2012. According to the U.S. Census Bureau, the number of new homes sold jumped to 389,000 units in September 2012 on a seasonally-adjusted, annualized basis. Not since the expiration of the $8,000 federal home buyer tax credit in April 2010 have new homes sold at such volumes. September's tally marks a 5.7 percent increase from the month prior, and a 27 percent increase from September 2011. There are now just 145,000 new homes for sale nationwide and, according to the National Association of Homebuilders, buyer demand continues to … [Read more...]
New Home Supply Remains Firmly In “Seller’s Market” Territory
The market for new construction homes remains strong nationwide. According to the U.S. Census Bureau, the number of new homes sold slipped 0.3 percent in August 2012 to a seasonally-adjusted, annualized 373,000 units sold — just 1,000 units less than July 2012 and the second-highest reading since April 2010. April 2010 was the last month of that year's tax credit which granted home buyers up to $8,000 off of their federal tax bill. As compared to one year ago, sales of new homes are higher by 28%. Furthermore, during the same time frame, the median sale price of a new home … [Read more...]