Categorized | Residential

New Home Sales Figures Show Growth For Third Straight Month

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New home sales increased in November for the third straight month in the United States according to the latest reports. The latest figures indicate that the market for new homes is at its strongest in more than six months.

As the new home sales numbers continue to improve, builder confidence is growing. Although the figures are still relatively low when compared with historical numbers, the gains indicate that the potential for recovery in the current market most certainly exists.

There are still a few very important factors that will determine whether or not the current growth continues in the coming months, and well into the next year. Many analysts believe that if the current lending conditions improve and become less restrictive, more buyers and builders will be able to access the necessary funds to provide for ideal growth and true recovery. The low lending rates for mortgage loans make buying and building a new home more affordable than ever, though the lending restrictions have truly limited any growth that could have resulted from that affordability.

Analysts believe that the job market will have to continue to improve as well in order to see true recovery and growth in new home sales. Growth in the job market is essential for boosting consumer confidence. As consumer confidence grows, so, too, will the residential real estate market in all areas of the country.

The market for new home sales varies across the country, with the Midwest and South performing far better than the Northeast and the West.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

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