The market for single-family homes among buyers 55 and older is booming, according to the most recent 55+ Housing Market Index from the National Association of Home Builders. During the first quarter of 2014, builder confidence in the market for new homes among older buyers reached its highest level ever after 10 consecutive quarters of year-over-year improvement. Steve Bomberger, chairman of NAHB’s 50+ Housing Council, said rising home prices and low mortgage rates are helping baby boomers sell their existing homes at a good price and purchase new homes more suited to their lifestyle. This trend, spurred by last year’s spike in home prices, is expected to lead to more homes being put up for sale this year, which will help slow the rate of price increases by building up the supply of homes available for purchase. Also in the report, the index’s individual components measuring current sales and expected sales both rose significantly from one year ago, while the gauge of prospective buyer traffic remained unchanged. More here.
Tag Archive for new homes
Nearly twice as many Americans say they’d prefer to buy a new home over a previously owned house, according to the results of a new survey from Trulia. In the poll, 41 percent of respondents said they’d strongly or somewhat prefer to buy a newly built home, while just 21 percent said they’d rather buy an existing home. But despite their preference, survey participants who said they wanted to buy a new house also said they weren’t willing to pay the extra cost. In fact, just 46 percent said they were willing to pay at least 20 percent more to buy a newly built home. Among the most popular reasons cited for a preference for new homes, modern features such as bigger closets, kitchen islands, and radiant floor heating was number one. Participants also said they would prefer to buy new because of the ability to customize the house and the fact that they’d spend less on maintenance and repairs over time. Jed Kolko, Trulia’s chief economist, said fewer people prefer existing homes but those that do are drawn to their traditional features and locations in older, established neighborhoods. More here.
Sales of newly built single-family homes fell 14.5 percent in March from February’s rate, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. The decline was more than economists expected and put new home sales 13.3 percent below last year’s level. Winter weather has been blamed for much of the sales slowdown seen throughout the early months of 2014 but, according to the report, sales fell in the West and rose in the Northeast, indicating the disappointing March numbers aren’t just due to harsh weather. Still, sales estimates for December through February have since been revised upward and the sales pace over the past year is much improved from where it was in 2011 and 2012. In short, sales of new homes – just like the overall economy and housing market – have been recovering slowly ever since the financial crisis and recent recession. Analysts expect sales to continue that recovery and pick up as the year goes on. More here.
New estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development show new residential construction increased in March. Privately owned housing starts rose 2.8 percent overall and construction of new single-family homes was up 6 percent from the month before. After a rocky winter, the improvement is a welcome sign but the gains were still less than economists had forecast for the month. Also in the report, permits to build new homes fell, though the decline was mostly due to a drop in authorizations to build multi-family housing. Single-family authorizations – which are a good indicator of future home building activity – were up 0.5 percent. Overall, new residential construction was at its fastest pace of the year in March. March also marked the second consecutive month in which construction of single-family homes increased, after falling in both December and January. More here.
Sales of new single-family homes fell 3.3 percent in February, according to estimates released by the U.S. Census Bureau and the Department of Housing and Urban Development. With the drop, new home sales are now 1.1 percent below year-before levels. February’s decline was bigger than economists expected but matches recent economic and housing data showing slumping consumer confidence and slower sales and construction activity this winter. Harsh weather has been blamed for much of the downturn and February’s 32.4 percent sales plunge in the Northeast supports that theory. On the other hand, sales also fell in the South and West, where weather was less of a factor. Still, the housing market is expected to rebound as the weather warms and the sales season begins. The median sales price of new homes sold in February was $261,800; the average price was $317,500. At the current sales rate, there was a 5.2-month supply of new homes for sale at the end of the month. More here.
Sales of new single-family houses surged to a five-and-a-half year high in January, jumping 9.6 percent from an upwardly revised December estimate. The sales spike was welcome news after harsh winter weather led to the slowing of a number of economic indicators during the month. It was also unexpected. Surveyed economists forecast a slight dip in sales for the month, expecting them to fall rather than rising to their highest level since July 2008. January sales were 2.2 percent above year-before levels and reached a seasonally adjusted annual rate of 468,000 units. Regionally, new home sales saw double-digit increases in the Northeast, West, and South, while tumbling 17.2 percent in the bitterly cold Midwest. The median sales price of new houses sold in January was $260,100; the average price was $322,800. Also, there was a 4.7-month supply of new homes available for sale at the end of month. More here.
An estimated 428,000 new homes were sold in 2013, according to figures released by the U.S. Census Bureau and the Department of Housing and Urban Development. Last year, sales reached their highest level since 2008 and beat year-before figures by 16.4 percent. But despite the year-over-year improvements, December saw a 7 percent drop in sales from November’s revised rate of 445,000, marking the second consecutive month-over-month decline following a sales surge in October. Regionally, the Northeast and Midwest experienced double-digit decreases, indicating cold winter weather may have contributed to what is already a slow sales month, historically. The median sales price of new homes sold in December was $270,200; the average price was $311,400. Also, there were an estimated 171,000 new homes for sale at the end of December. That represents a 5-month supply at the current sales rate. More here.