by Alexis Cala, PICurrent Assistant Producer
Courtesy of TheTruthAbout
New home sales made a big jump last month. They’re the highest they’ve been in nearly a decade.
The housing market looks like it’s trying to make a comeback, according to a report from the U.S. Department of Commerce. Economists hope this means the recession is nearing an end.
Along with the surge of new home sales, construction of homes and apartments increased by 3.6 percent in June, the highest level in seven months. Even requests for building permits, which signal growing demand for new homes, rose 8.7 percent.
If you’re considering home-ownership, now might be the time to buy. Why?
- Tax credits: $8,000 tax credit for first-time home buyers has helped many people buy their first home. Because this credit expires in November, many buyers are now scrambling to take advantage of it.
- Low mortgage rates: Average rates for 30-year mortgages have fallen to a record 4.78 percent making it easier for some to afford a new home.
- Falling home prices: Median new home prices fell about 12 percent to $206,200 compared to last year. Prices likely will continue falling as new homes compete with foreclosures. Good news for home buyers, not-so-good news for sellers.
This data is the latest signal that the U.S. housing market may be finally leveling off as prices fall and some home buyers begin to cautiously get back into the market. But, even with these signs of stability, some are worried that unemployment, low wages and lending issues could continue to impact homeowners everywhere (read the full story on The New York Times).
A full recovery isn’t going to happen overnight, especially when empty houses, foreclosures, and bad mortgages still hurt many Americans. But even small improvements can help boost confidence and get America a little closer to a more stable economy.
If you’re ready to own a home, but don’t know where to start, we can help. Check out The Beehive for everything you need to know before you buy.
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