New Home Sales were up in February. Will sales heat up even further this spring and summer?
What is the New Home Sales report? The New Home Sales report shows the number of newly constructed homes with a committed sale during the month. The level of new home sales indicates housing market trends, and the volume of sales indicates housing demand. Also, the monthly supply of homes serves as an input into the level of housing pressure.
What's happened recently? New Home Sales hit a seven-year high in February, rising 8 percent from January to an annual rate of 539,000 units, while January's sales were revised higher to 500,000. New Home Sales now stand at their best level since February 2008 and are up nearly 25 percent from the 432,000 recorded in February 2014.
What's the bottom line? While pricing and sales for new homes were up, the Existing Home Sales report was not as promising, due in part to winter weather and low inventory. It remains to be seen if spring and summer will be strong seasons for the housing sector, but these early numbers for new homes sound another promising note in the recovery.
Nevertheless, home prices are continuing to show signs of growth, as the S&P/Case-Shiller Home Price Index rose by 4.6 percent from January 2014 to January 2015. This is the biggest gain since September and up from the 4.4 percent annual rate recorded in December. The lofty price gains seen in 2013 and early 2014 may have cooled, but home price gains continue to be steady at what is considered normal levels.
The bottom line is home loan rates continue to remain very attractive, making now a great time to consider a home purchase.
Today's blog courtesy of Steve Bighaus, Security National Mortgage Company