New Homes Sales Sees Increase In April

Joseph Byrne Thursday, May 23, 2013

Nationwide, new home sales saw an increase in April and the median price was almost at a record high. This could indicate that the market is recovering, albeit at a slower pace than some would like.

The reasons for this increase can be attributed to the near record low mortgage rates and the increase in jobs. Both of these reasons encourage people to buy homes. While sales are still below the healthy market pace, they have risen 29 percent over the last year, which is a huge increase over the last few years.

In addition, the median home price is going up quickly simply because there is a limited supply of homes for people to bid on and buy. Credit Suisse economists say that the solid price increases also reflect an effort by homebuilders to keep their supply costs down to help home prices to increase.

Whatever the reason, the median home sales price has jumped 8.3 percent nationwide in April from March. The median price of $271,600 is the highest median on record going back to 1993. This is said to be a good sign for the real estate market and the economy in general.

Although new homes are only part of the housing market, they do make a big effect on the economy in that each one build creates an average of three jobs for a year. In addition, each one built generates about $90,000 in tax revenue. This is a big deal that needs to continue. 

joeb@longislandyellowpages.com

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