Like most housing data from November, the most recent New Home Sales report showed sales volume increasing last month, and home supplies falling.
It’s encouraging that first-time and investment property buyers were both outnumbered by “move-up” buyers in October; buyers that have sold their respective homes in favor of larger ones.
Sales of existing homes in recovered in August, perhaps the result of a post-tax credit normalization.
Just one week after reports of Existing Home Sales and New Home Sales plunging, the housing market signaled that the next few months may fare better than did May and June.
Although new home inventory actually dropped 2,000 units in July, the slowing sales pace still managed to push the national supply higher by 1.1 months. At July’s rate of sales, the nation’s new home inventory would be exhausted in just about 9 months.
The number of home resales plunged by 1.4 million units in July. Home buyers may uncover opportunities for a deal.