As 2019 comes to a close, there are several signs that the housing market will be strong in the year ahead. Among them, new home sales might top the list. For example, according to the most recent numbers from the U.S. Census Bureau and the Department of Housing and Urban Development, sales of newly built single family homes are now nearly 17 percent higher than they were at the same time last year. Additionally, the past three months have been the best three months since 2007. In short, demand for new homes is high and that’s good for the economy, the housing market, and potential home buyers. So what’s driving the increased demand for new homes? Well, a large part of it is mortgage rates. Rates fell in 2019 and helped offset home-price increases, keeping affordability levels manageable. Combined with a strong job market and rising wages, lower borrowing costs motivated more Americans to want to make a move. And, with buying conditions expected to remain fairly stable in 2020, more of the same is expected in the year ahead. More here.
New Home Sales See Best Three Months Since 2007