U.S. new home sales hit 5-year high, Prices Rise
Sales of new U.S. single-family homes vaulted
to a five-year high in June, showing little signs of slowing in the face of
higher mortgage rates.
The Commerce
Department said on Wednesday sales increased 8.3 per cent to a seasonally
adjusted annual rate of 497,000 units, the highest level since May 2008. Sales
increased 1.3 per cent year over year during May. Economists polled by Reuters
had expected new home sales to rise to a 482,000-unit rate last month. Compared
with June last year, sales were up 38.1 per cent, the largest increase since
January 1992.
The third straight
month of gains in new home sales, which are measured when contracts are signed,
suggested the housing market was gaining more muscle and should allay concerns
that higher mortgage rates could slow down momentum.
Last month, the
inventory of new homes on the market increased 1.3 per cent to 161,000, the
highest since August 2011, as builders continue to ramp up production to meet
the growing demand. Still, supply remains tight, putting upward pressure on
prices. The median new home price increased 7.4 per cent from a year ago.
At June’s sales pace
it would take 3.9 months to clear the houses on the market, down from 4.2
months in May. A supply of 6.0 months is normally considered as a healthy
balance between supply and demand.
Florida’s housing market continued to show increased strength
in June, including more closed sales of single-family homes, more new listings,
rising median prices and a reduced inventory of homes for sale, according to
the latest housing data released by Florida Realtors®.
Strong buyer demand, along with the tight supply of available
homes, is putting upward pressure on prices. June recorded the 18th consecutive month of an increase in
the statewide median sale price for a single-family home. Statistics indicate
that on average, sellers received about 94 percent of their asking price in
June. Throughout all of Florida, closed sales of existing single-family homes
totaled 20,403 in June, up 8.6 percent compared to the year-ago figure,
according to data from Florida Realtors.
According to the
National Association of Realtors® (NAR), the national
median sales price for existing single-family homes in June 2013 was $214,700,
up 13.2 percent from the previous year. The median is the midpoint; half the
homes sold for more, half for less. Housing industry analysts note that sales
of foreclosures and other distressed properties can have the effect of distorting
the median price downward because they generally sell at a discount relative to
traditional homes.
If you are a Canadian
looking to buy a house, condominium or a townhouse in Florida, I can help. I
have a network of qualified professional Realtors® throughout Florida.
Visit my
website at www.BuyingInFlorida.ca
I’ll match you with a
local Florida Realtor® who regularly works with Canadians in the area or
community that you wish to buy.
Randy Miller
Sales Representative
Re/Max Rouge River Realty Ltd., Brokerage in Whitby
905-668-1800
