January's reading of 468,000 was the highest since July 2008.
Chicago, IL (PRWEB) February 26, 2014
Peoples Home Equity is excited to echo news that new home sales have reached a fresh 5.5 year high! The positive news was refreshing after a slew of negative housing announcements from for January.
The U.S. Census Bureau reported a 9.6% rise in new home sales for January 2014 from December 2013. January's reading of 468,000 was the highest since July 2008. The news was well received since building permits, housing starts, existing home sales, and pending home sales were all negative for January. By highlighting both housing starts and existing home sales one may appreciate how positive new home sales were for January. Housing starts declined by the largest margin in over 2 years, and existing home sales declined to a 1.5 year low.
Even though new home sales were only about 10% the size of existing home sales, the rise proves that Americans are continuing to buy homes at a rising rate. Sales differed wildly across the U.S. from a 73.7% rise in certain parts of the northeast to a -17.2% decline in the Midwest due to the unusually cold winter. Peoples Home Equity thinks these January new home sales should calm concerns that either interest rates or supply issues have slowed real estate activity. At new home sales current pace, it would only take half a year to get new home demand to reach equilibrium with new home supply.
Peoples Home Equity is optimistic about future home sale reports since the spring and summer buying months are coming upon us. In terms of the now, prospective mortgage applicants should appreciate the fact that most home sales figures have been lackluster which has stopped mortgage rates from rising further than they already have. If interested in purchasing a home while the market is still offering a competitive mortgage rate, then please contact a Peoples Home Equity loan officer today for home loan details at: (855)-897-0300