Sales of single-family homes have risen 5.7% to an ajusted rate of 389,000 units in September, making it the fastest sales pace recorded since April 2010. The reason for the increase in sales is because most consumers have been anxiously waiting for the perfect time to buy over the past few years and are now going forward with the purchase of a new home. However, there has been some kick back for some, as mortgage guidelines are still stringent.
It has been suggested that there is only a 4.5 month supply of new homes at the current sales price. There is an indication that builders continue to have a tough time obtaining construction credit which could mean problems down the road as the completed number of new homes for sale is at is tightest since October of 2005.
One further note: while most areas have experienced increases for new home sales the Midwest had a 37.3% decline.
For the full article from the NAHB click here.