New-Home Sales Are at an Eight-Year HighJanuary 28th, 2016 by Casey Flores
More Americans became new homeowners in 2015.
Sales of newly built, single-family homes rose 14.5 percent year-over-year to 501,000 units in 2015, the highest level since 2007, according to newly released data from HUD and the U.S. Census Bureau. Meanwhile, sales in December increased 10.8 percent to a seasonally adjusted annual rate of 544,000 from an upwardly revised November reading.
“Relatively low interest rates and an improving economy are motivating buyers to make a new-home purchase,” says NAHB chief economist David Crowe. “Builders are upping their inventory in response to heightened consumer interest. Housing inventory is now at its highest level since October 2009.”
Sales increased in all four regions in December. The Midwest, West, Northeast and South all posted respective gains of 31.6 percent, 21 percent, 20.8 percent and 0.4 percent.
The inventory of new homes for sale was 237,000 units in December. This is a 5.2-month supply at the current sales pace.