Home Sale Numbers Nationwide Dip Slightly

New protections by the Department of Housing and Urban Development (HUD) kicked in the first of October, but their effects were not felt until November when delayed closings affected home sales numbers nationwide.  The plunge in new home sales was expected because of the delays that the new system incurred coming out the gate.
The new system for closing new home loans and home loans included a drastic overhaul of the traditional HUD (Settlement Statement), and this new document, called the CD (Closing Disclosure) had multiple checks and balances throughout the Good Faith Estimate all the way to closing to ensure that home buyers know what every aspect of their home buying process is about.
Despite the expected slowdown in home sales in November, the National Association of Realtors said that solid gains in real estate have been seen throughout the entire year of 2015.

Another factor contributing to an adjustment in home sales numbers is the fact that home values are increasing a rate that is double that of typical wages.  Year-over-year, home values have increased 6.3% in November to $220,300.  The good news is that wages exist with an improving job market and still historically low interest rates are encouraging buyers and refinancers to get their loans done before there is a significant increase in the interest rate.

Still, builders will have to get busy in 2016 because the real estate market is still showing a gap between availability and inventory for new home buyers.  New home builders can fill this gap with newly constructed homes which will help balance out home prices.
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Newly Built Home Sales Rose 5.4% From June

Just like summer in Louisiana is hot in July, the housing market nationwide heated up this summer with new home sales activity rising to 507,000 homes sold. The Census Bureau and HUD reported that newly built home sales rose 5.4% from June and 25.8% from July of last year. New home inventories were reported at 218,000 in July which is the highest level that has been seen in over five years.
This increase was also seen in the private residential construction spending where the highest amount spent was at an annual rate of $387 billion in July. This increase in spending verifies that the construction industry is continuing to experience strong economic growth. Single family homes have pushed construction expansion 15.8% on a year-over-year basis and multifamily new home construction spending is 21.2% higher than it was reported a year ago as well.

Developers, new home builders, and custom home builders are not the only ones that are seeing a positive growth, the National Association of Realtors (NAR) reports increase in existing home sales. Existing home sales increased in July 0.5% from June and 7.4% from July of last year. Completed transactions were reported at the highest since February 2007, which was the beginning of the downhill slide of the Recession.

Home buyer confidence stems from the strengthening economy overall with increased spending. The

Bureau of Economic Analysis reports that the Gross Domestic Product (GDP) grew to a strong 3.7% rate. These findings were based on several factors including investment, faster growth for consumption, government spending and trade components.

Now is the time for buyers to tap into the housing market. Sales are solid which makes the real estate market a stable vested interest. New home prices are continuing to strengthen making real estate a great investment. Interest rates continue to remain at record lows with the reluctance of the Fed to increase interest rates. The Department of Housing and Urban Development have rolled out new loan products which require a much lower down payment on FHA and some conventional mortgages. Best of all, there is a spectacular new home builder in St. Tammany Parish which builds new, custom home exactly to your specifications and design. These new homes are designed and built to withstand the test of time and elements with energy efficient green building techniques as well as the best, most quality components to ensure the strongest and best built new home in St. Tammany Parish. For More Information, Call 985-626-7619 or E-mail Info@RonLeeHomes.com.

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