New home sales rose in the month of May, seeing a 2% increase over the month of April, according to the Census Bureau and the Department of Housing and Urban Development, reaching levels it hasn’t reached since February 2008. This comes after new home sales went up 6.8% in the month of April. Part of this significant hike can be attributed to the fact that home inventory rose 3.2% for the month and 1.8% over last year.
Much of the overall growth in the housing market has been helped by steady job growth, continued low interest rates and the rising cost of rental properties. It has grown so fast that the surplus supply of houses will last just 4.5 months. A healthy supply is considered 6 months. In many markets, it can be cheaper to buy a house than it would be to rent a property.
A rise in home sales like this show that consumers have more confidence in the market and a growth in home sales can help to shape the wider economy. When people buy more homes, they tend to buy other big ticket items as well including washing machines and refrigerators for their home.
The sale of existing homes also went up in the month of May for the first time since November 2009. Sales are up 5.1% from the month of April according to the National Association of Realtors. Much of this rise has been attributed to first time home buyers entering the market, making up 32% of total home sales.
In the mid-atlantic region, home sales are continuing to recover every month. In Fairfax County for example, new home sales were up 8 percent over the same time last year while the median price only rose 4 percent according to the Washington Business Journal. This is just another indicator that people have more confidence in the housing market and are starting to come back and participate in the buyers market.
Now is an excellent time to buy a house in the area and you can Christopher Companies has a home that is perfect for everyone. You can find out more about the range of homes and locations they offer from their website. You can also contact their sales office for more information.