10 Dec Existing Home Sales and Builder Confidence On the Rise
The National Association of Realtors® recently reported that existing home sales rose to a seasonally adjusted rate of 4.79 million in October, and that sales were up 10.9% year-over-year. Additionally, thanks to strong demand from interested buyers, the median home price nationwide increased to $178,600 in October, a marked 11.1% jump from the previous year. What’s more, this was the eighth-straight month that recorded a year-over-year increase.
Because of the surge in demand, a lower supply of homes has helped to drive price increases. Additionally, the improved state of the housing market has also increased builder confidence. The National Association of Home Builders/Wells Fargo Housing Market Index rose five points in November marking the seventh straight monthly increase. According to Barry Rutenberg, a home builder and chairman of the builders group, “Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country. In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates.”
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