Like most housing data in November, the most recent New Home Sales report showed sales volume increasing last month, and home supplies falling.
According to the U.S. Department of Commerce, sales of new, single-family homes increased to 290,000 in November on an annual basis, a figure equal to the New Home Sales 6-month rolling average, and a 6 percent improvement from October.
At the current pace of sales, the national supply of new homes for sale will be exhausted in 8.2 months – a strong 0.6-month improvement from October.
This data is consistent with the most recent Existing Home Sales report. It showed sales volume rising 6 percent, too, and a similarly-strong inventory drop.
For the housing market in El Dorado, Sacramento, and Placer Counties. All in all, it’s another step in the right direction. Since May’s post-tax credit plunge, home prices have stabilized and a foundation for growth has been built. Home builder confidence data highlights this point.
Also interesting in the November New Home Sales report is the volume breakdown by price point. Less expensive homes powered the market:
» Homes under $200,000: 47 percent of all sales
» Homes between $200,000-$299,999: 29 percent of all sales
» Homes between $300,000-$399,999: 14 percent of all sales
Luxury homes accounted for less than 2 percent of sales last month suggesting that builders count first-time and move-up buyers as their core market.
As 2010 comes to a close, housing looks poised for a rebound. Sales in all categories are improving, relative to 6 months ago, and the economy is improving. In conjunction with rising mortgage rates, the best time to buy a new home may be now.
With new construction homes having to compete with the massive amounts of bank owned and short sale properties, new home builders have been forced to price their homes to compete with the marketing dominating bank owned and short sale properties. This is another buyer advantage in this buyer’s market. Contact you local area professional such as a real estate agent, loan officer, and appraiser for market information in your area.