According to HUD and the U.S Census Bureau, the sales figures for newly built, single-family homes has slowed down 8.4%. It is now sitting at a seasonally adjusted annual rate of 350,000 units for the month of June. This comes off of a steady increase that the previous months have had. Despite slowing, the sales numbers are indeed up on a quarterly and yearly basis. Builders are gaining more serious buyers too, so the news is positive overall. However, builders are still facing issues with tight inventory of new homes for sale. Having a larger selection of new homes for sale would make things easier for them, but they also face issues with obtaining credit to build new homes.
The figures for Pending Home Sales has declined in June as well. The steady decline of housing inventory proves to be an issue for more than just builders. While buyers continue to show interest in purchasing homes in this market, there are fewer and fewer homes listed and available, which leads to fewer contracts signed. It is speculated that the amount of homes for sale will need to double over the next two years in order to meet the demands of the market for both rentals and ownership. Part of the reason that there are not many homes for sale is that people have been taking advantage of low interest rates. They are opting to refinance their existing homes rather than buy new homes.
If you are in the market for a new home or even to refinance your current home, don't hesitate to call Quest Loans. We would love to help you with this process! 888-883-5252.
Saturday, July 28, 2012
Sales for New Homes Slowed
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