This article discusses the reports of increasing new home sales in the United States during the month of February. According to the United States Census Bureau, sales of new single-family homes climbed 7.1% to a seasonally-adjusted annual rate of 1.02 million units. This increase in new home sales marked the third consecutive month of increases.
These reports suggest that despite a backdrop of uncertainty in the housing market, there is still strong momentum in regards to housing activity. Home builders and potential home buyers appear to still be confident that the housing market is relatively stable and is a viable option for purchases.
The increases in new home sales are attributed to extremely low mortgage rates and tight housing inventory available across the U.S. Low mortgage rates are encouraging buyers to make purchases and the tight housing inventory is providing a sense of urgency for buyers looking to make a purchase. In addition, the limited supply of new homes and a growing demand from buyers has allowed builders to deem their prices slightly higher.
Taken together, the reports of increasing new home sales during the month of February is met with cautious optimism amidst the backdrop of market uncertainty. Low mortgage rates, tight inventory, and a growing demand has allowed home builders to increase prices and these trends are expected to remain consistent throughout 2021. However, there will be an increased effort to provide adequate and affordable housing in order to keep the housing market active and relatively balanced.
You can read this full article at: https://www.housingwire.com/articles/new-home-sales-climb-in-february-for-the-third-straight-month/(subscription required)
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