The U.S. housing market continues to propel the broader economy ahead. According to the Department of Housing and Urban Development (HUD), sales of new construction homes nearly eclipsed a 4-year watermark last month.
U.S. buyers are feeling better about the economy, and they’re jumping to buy affordable homes.
Big Demand For Newly-Built Homes
Sales of newly-built homes is rising. On a seasonally-adjusted, annualized basis, the number of new homes sold in April 2013 reached 454,000, a 2 percent increase from the month prior and a 29% improvement from April of last year.
A “new home” is a home which has not been previously occupied.
April also marked the fourth consecutive month in which new home sales topped four-hundred-thousand. This is a winning streak unmatched since late-2008 which suggests that U.S. housing is returning to pre-recession levels.
Also notable is that new home sales are climbing despite a depressed inventory.
At the end of April 2013, there were an estimated 156,000 new homes available for purchase. This is a small increase from the month prior, but well below historical norms. At the current pace of home sales, the entire U.S. stock of newly-built homes would be sold out by Labor Day.
There is current a 4.1-month new home supply. Home supplies of 6.0 months or fewer suggest a “seller’s market”. Buyers of new homes can reasonably expect higher home prices through the second half of 2013 and into 2014.