New-Home Sales Increase to a Six-Month High
New-home sales in October rose to the highest level since April, according to a Commerce Department report.
November 24, 2021 2 MIN
New-home sales in October rose to the highest level since April, according to a Commerce Department report.
Existing home sales in October rose to the highest level since January, according to a Monday report from the National Association of Realtors.
Residential builders are still being challenged by a lack of materials and workers, said Mark Vitner, a Wells Fargo senior economist.
Homebuilder confidence rose in November, the third consecutive month of gains, despite supply-chain bottlenecks that slowed deliveries.
The top reason to move, according to sellers, was the desire to be close to friends and family. The No. 2 reason was the need for more space, according to the NAR report.
Record gains in home prices and a shortage of properties for sale have given sellers the most confidence they’ve ever had, according to a report from Fannie Mae.
A third of real estate listings were under contract within seven days, rising from a month earlier during a time when home sales typically slow.
Sales of new homes are on track to jump 15% next year as builders overcome supply-chain challenges, NAR said in a forecast.
The average mortgage size for new homes rose to a record high of $408,522, a gain of 15% from a year ago, according to MBA’s Builder Application Survey.
It’s half the size of President Joe Biden’s original bill, but it still includes homebuyer assistance and a rescue of the nation’s flood insurance program.
