Just like summer here in New Orleans, July’s housing market was hot! The new home sales activity is on its way back to normal with annual home sales already reaching 507,000. The Census Bureau and HUD reports that newly built home sales rose 5.4% from June of this year and 25.8% from July of last year. New home inventories were reported at 218,000 in July which is the highest level that have been seen in over five years.
This increase can also be seen in private residential construction spending where the high was at an annual rate of $387 billion in July. This solidifies the continuing economic growth in the construction industry. 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.
Developers 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 sales (closings) were reported at the highest since February 2007.
The confidence for home buyers stems from the strengthening economy. The Bureau of Economic Analysis reports that the global economic developments (GDP) growth is at 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 buying new homes or existing homes to tap into the housing market. Sales are solid which makes the real estate market a stable venture. New home prices are continuing to strengthen making real estate a great investment.