With favorable mortgage rates and incomes rising as stimulus, new home sales rose nine percent November year-over-year, and four percent above October, according to statistics from the Census Bureau and the Department of Housing and Urban Development (HUD), according to themortgagereports.
Nationwide mortgage rates are around four percent, and with private and government program lenders offering low down payments, now is a very good time to buy a home. Nov. 2015 saw 409,000 new homes sold at a seasonally-adjusted annual rate (SAAR). There are only 232,000 new homes left to sell across the country.
November sales were so strong that at the current pace of sales, all available homes would be sold within 5.7 months. Rule of thumb says when the supply of homes is below six months, it becomes a “sellers market,” with negotiations in their favor because of the low supply. New home supply has been below six months for 46 or the previous 48 months.
Similarly, homebuyers will have little leverage over builders, with fewer add-ons and no price breaks. Since 2012, home values nationwide have risen 25 percent. ##
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