Good News in the Real Estate Market!
New-home sales for single families rose 1.3% in October marking it as the best pace for new-home sales since May! New construction is revealing recent signs of picking up new-home activity compared to last year’s statistics.
"Builders have been seeing some marginal improvement in sales activity over the past few months, particularly in select markets where consumer confidence is higher due to improved economic conditions," Bob Nielsen, chairman of the National Association of Home Builders, said in a statement. "While this trend is encouraging, overall sales activity is still well below normal due to the effects of overly tight credit conditions for builders and buyers, the continued flow of distressed properties on the market, and inaccurate appraisal values on new homes."
Still, nationwide inventories for new-homes are still at an all-time record low. This can be interpreted in a positive light. Builders are able to keep their inventories at a rate matching the current sale rate, keeping the number sustainable.