New-home sales rate is highest in a decade
The average sales price for September was $385,200.
Sales of new build single-family houses increased by almost one fifth in September, peaking at an annual seasonally adjusted rate of 667,000 units, which is the highest sales rate since October 2007.
The U.S. Department of Housing and Urban Development and the U.S. Census Bureau released residential sales statistics for September 2017, revealing single-family houses rose 18.9% above the revised August rate.
The build rate of 667,000 annual units was also 17% greater than the September 2016 estimate of 570,000.
New home sales increased across all four regions of the United States. Sales rose 33.3% in the Northeast, 25.8% in the South, 10.6% in the Midwest and 2.9% in the West.
“New-home sales have bounced back from a few soft months and have returned to the strong growth trend we saw earlier this year,” National Association of Home Builders chief economist Robert Dietz said.
“As inventory remains tight, we can expect new homes sales to continue to make gains in the months ahead.”
The median sales price of new houses sold in September was $319,700. The average sales price was $385,200.
The seasonally-adjusted estimate of new houses for sale at the end of September was 279,000, representing a five month supply at the current sales rate. This is the lowest recorded level of supply since March 2017.
Analyzing the data, realtor.com chief economist Danielle Hale saw disparity between pricing and what’s paid.
“The growth in prices for new homes also shows signs of slowing, though that hasn’t yet appeared in home listing prices, which are up 10 percent from a year ago,” she said.
“The discrepancy between list price increases and sales price increases suggests that some buyers may have reached a limit on the price increases they can afford, but sellers have not yet caught on.”
National real estate data for August shows existing-home sales fell for the fourth time in five months, while sales pace in the South and West regions lost steam after making modest gains in July. Despite high numbers of building permits for private dwellings in August, housing starts and completions fell month-on-month.
After maintaining its position as the top-performing housing market in the US for months, the waterfront town of Vallejo in Solano County was edged out by fellow Californian cities San Jose and San Francisco last month.
The buying process doesn’t stop once you’ve found your dream home. Securing the right loan is a crucial step.