New Home Sales Jump 18% in August

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Peoples Home Equity comments on the latest new home sales report from the U.S. Census Bureau.

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This August rise in new home sales marks the highest level in 6 years and the highest percentage increase since 1992!

Lenders like Peoples Home Equity were pleasantly surprised to see August new home sales rise a whopping 18%

The U.S. Census Bureau reported on September 24th that August new home sales reached 504,000. By comparison, this increase obliterated markets forecasts of just 430,000 to 439,900, also ending 2 month decline during June and July. This August rise in new home sales marks the highest level in 6 years and the highest percentage increase since 1992!

Readers should note that new home sales are often revised a month later. However, a revision may be unlikely given that a September 17th release by the NAHB stated that September home builder sentiment was at a 9 year higher. NAHB Chairman Kevin Kelly said “Since early summer, builders in many markets across the nation have been reporting that buyer interest and traffic have picked up.” One should also not assume that builder sentiment was segregated to one region, sentiment, and “rose across every region of the country in September.”

Peoples Home Equity thinks rising new home sales is a victory for America’s housing supply problem. Home builders will now have the confidence to construct even more properties creating more jobs in the process. Higher new home sales means homeowners are trading up their homes for new ones giving first-time homebuyers the chance to purchase the existing housing inventory. It’s a win for everyone, home builders profit from sales, homeowners enter a new piece of real estate, and first-time homebuyers get a property.

First-time homebuyers are encouraged to be pre-approved for a home loan should they decide to bid on a desired property. Being pre-approved is essential to the home buying process. Sellers may not wait for a homebuyer to apply at a local lender and see if he or she is approved for a loan. Sellers, eager to pay and move into their new home will want know the funds will be transferred quickly in the event of a sale.

Contact a Peoples Home Equity loan officer today at: 262-563-4026

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Giorgio U Ferrero
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