The New Home Sales report was just released showing that newly constructed homes with committed buyers increased by 47,000 units to 713,000 for the month of August. The demand for new homes is currently nearing the highest levels seen in about twelve years. Monitoring this number is important because new home sales point to people spending money for things such as appliances, furniture, electronics, etc. Analysts look to this report to help gauge future economic momentum.
The Federal Housing Finance Agency (FHFA) has reported that single family homes purchased with conforming loan amounts across the nation have increased in price by 0.2% since last month and by 5% since last year. These numbers came in better than expectations, and the annual number was slightly stronger than last month’s 4.8%.
Overall, both of these reports show that home purchase demand is still strong. New homes are getting bought at near twelve month highs, and demand for homes that fall in the FHFA report are still pushing prices higher. The housing market is still running strong and healthy.
Sources:
https://us.econoday.com
By: Jon Iacono
