Jonathan Smoke, chief economist at realtor.com, said that “at last we have a clear, statistically significant view that the new home market is having its best spring buying season in a decade.”
At the end of April, 2016 there were approximately only 243,000 new homes for sale, which amounts to a 4.7 month supply, down from 5.5 months in March.
The median sales prices of new homes sold in April was $321,100, while the average was $379,800.
Regionally, the biggest jump was in the Northeast where sales rose 52.8 percent. The West improved 18.8 percent and the South 15.8 percent. The Midwest saw a decline of 4.8 percent.
Robert Dietz of the National Association of Home Builders (NAHB) sees the increase as a sign of increased production to come, while Ralph McLaughlin of Trulia said “This should put to rest fears of an oncoming recession.” Ed Brady, also of the NAHB, says the surge is an indication “that growing demand will keep the housing sector on an upward trajectory through the spring buying season.”
MHProNews understands the volatility of the new home market, often highly changeable month to month, while the production of manufactured homes has been on a steady rise since the rebound of Aug. 2011. ##
(Photo credit: reuters)
