As new home sales increase homeowners sell their property to upgrade to the new home thus allowing first-time home buyers a chance to by their existing property.
Chicago, IL (PRWEB) May 27, 2015
As reported by the U.S Census Bureau, at an annual pace of 517,000 for the month of April, new home sales reached the 2nd highest level of 2015. The 67,000 sale increase over March’s revised number of 484,000 was mostly sparked by new home sales in the Midwest. The Midwest experienced a whopping 36.8% rise in sales which is a seven year high for the region! Sales in the south also increased by 5.8%, while the west experienced a -2.3% slip and the Northeast fell -5.6%.
Still, the annual pace is well below the historical average of 655,000 from 1963 to 2015, as shown on TradingEconomics.com. The all-time high pace of 1.389 million was set in July 2005 while the low of 270,000 was recorded in February of 2011.
The national median home sale price was $297,300 while the average sale price was $341,500. Real estate supplies are at 4.8 month at the current sales rate.
Peoples Home Equity attributes the rise of Midwest new home sales to the regions sheer lack of inventory for sale, warmer weather, and its falling unemployment rate. The rise in sales will only lead to both higher home sales and prices. The sale of a new home has a positive domino effect. As new home sales increase homeowners sell their property to upgrade to the new home thus allowing first-time home buyers a chance to by their existing property.
Given the lack of inventory, especially in the Midwest, Peoples Home Equity encourages buyers to invest into the opportunity of purchasing a property at a great time. With mortgage rates at historic lows and real estate prices still at bargain levels, one should at least be pre-approved for a home loan to purchase something they may find attractive.
If in need of a mortgage, contact a Peoples Home Equity loan officer today at: 262-563-4026.