America's South Is Leading The Nation In New Home Sales

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Peoples Home Equity shares data from a recent Corelogic article and comments on its ramifications for prospective buyers.

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more individuals will become approved for home loans and the new homes market will become even more competitive

Peoples Home Equity was intrigued by a recent May 15th Corelogic article titled “What are the Most Active New Sales Markets?

According to Corelogic, “Eight of the 10 fastest growing new home sales markets are in the South.”
The Nashville-Davidson-Murfreesboro county area was the most active for new home sales in the nation, this news hit close to home since Peoples Home Equity which is based in Tennessee. In addition, Corelogic stated that “Nashville is not only exhibiting strength over the last year, but it is one of only five markets that have higher new home sales in 2015 than in the very early 2000s when markets were more normal.” In second place “is San Jose, Calif., where new sales grew 14 percent from a year earlier. It is also one of the five markets that is currently larger from a new sales volume perspective in comparison to the early 2000s.” The third fast growing area for sales is Atlanta which is surprising “given that distressed sales still account for 16 percent of all sales–by far the highest of the three markets. As distressed sales continue to fall in Atlanta, that will give additional marginal lift to new sales.”

Corelogic’s opinion is that “Overall, while new home sales remain relatively low in comparison to normal times, there are several southern markets that buck the national trend. Looking forward, southern markets with strong demographic growth will exhibit robust new home sales activity. In many of the remaining metros with solid job growth, the reality of very low inventory of unsold new homes, declining vacancies and rapid price appreciation will lead to more construction in the next few years that will lift many more markets above their current new home sales trajectory.”

Peoples Home Equity thinks new home sales will continue to rise further as more and more American’s are able to rebuild their credit since the recession and save a large downpayment. As time progresses under America’s relatively low unemployment rate, more individuals will become approved for home loans and the housing market will become even more competitive. For this reason, Peoples Home Equity strongly encourages all prospective buyers to at least get pre-approve for a mortgage now while they are searching to purchase a property. One does not want to wait, both interest rates and home prices are set to increase leading in to the late summer.

If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026.

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Giorgio U Ferrero
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