As prices on brand new homes dipped in July, buyers raced to snap them up at a record pace.
Sales of the new homes went up 7.5% from June to July, with owners picking up the keys to about 57,000 newly built residences. That’s the most sales since October 2007, when the same number of sales went under contract. Annually, sales of the brand-new homes were up a whopping 32.6% compared to last July.
The spike in sales isn’t unexpected as aspiring homeowners have been demanding more homes go up for sale. With lower mortgage rates, we have ended up in this spot that if you have good credit and enough money for a down payment, it remains very affordable to buy a home. New home prices are coming down and that’s key to growth in new home sales.
Builders are beginning to offer more lower priced homes as sales in the luxury market are beginning to stall. When contending with high land, regulatory and labor costs, it’s often more cost-effective for builders to put up more expensive homes. But the demand has been strongest among first time home buyers on a budget.
The new home market couldn’t grow unless builders found a way to offer more adorable homes that cater to first time buyers.
