New Single-Family Home Sales Spiked 11.6 percent In December

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The Federal Savings Bank shares recent new home sales data from the U.S. Census Bureau and the Department of Housing and Urban Development, and its implications on future of the market.

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The Federal Savings Bank expects the market to continue expanding in 2015 with an emphasis on first-time home buyers

The Federal Savings Bank, a Midwest based lender was pleased with December 2014 new single-family home sales which showed a jump of 11.6 percent from the previous month, according to the U.S. Census Bureau and the Department of Housing and Urban Development. Sales of single-family houses rose to a seasonally adjusted annual rate of 481,000, up from 431,000 in November. Overall, new home sales increased 1.2 percent in 2014 to an estimated 435,000 from 2013.

There was a higher percentage growth of new single-family home sales than for existing homes in 2014. The National Association of Realtors reported total existing-home sales were down 3.1 percent in 2014 compared to 2013. Last year, there were 4.93 million sales of single-family homes, townhomes, condominiums and co-ops.

Despite this slight decline, December existing-home sales improved from the previous month, increasing 2.4 percent from November to a seasonally adjusted annual rate of 5.04 million. This reflects upward growth in the second half of the year after a sluggish start, according to NAR Chief Economist Lawrence Yun.

"Home sales improved over the summer once inventory increased, prices moderated and economic growth accelerated," Yun said in a statement. "Sales were measurably better in the second half - up 8 percent compared to the first six months of the year."

The increase in new home sales in December is a bright spot for the housing sector, The Federal Savings Bank expects the market to continue expanding in 2015 with an emphasis on first-time home buyers. This new single-family home sales report exceeded economists' expectations, and positive reports could increase confidence in builders and investors to continue this growth.

Home buyers considering buying a new or existing home could contact the Federal Savings Bank, a veteran owned bank, to learn more about being approved for a mortgage.

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Giorgio Urbano Ferrero
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