In recent news we’ve learned that new home sales spiked in November with high demand in 2016. The news points to a housing market that is anything but stagnant. In fact, it’s showing healthy signs, even as we move into a typically slow period for real estate.
Telling factors in the uptick comes with specific new homes data. In November, new home sales rose 5.2%, moving the market to an all time high since July. Also, the rise signals the 2nd highest level since the recovery began. Another telling factor is in the breakdown regionally. For example, in the Midwest, monthly sales gains rose significantly. The figure reported, 43.8%, over the month tells quite a positive story. In addition, the west showed a November uptick in sales at 7.7%.
New Home Sales Spiked in November With High Demand In 2016
When we look back on 2016 and all four major geographic regions, we find the same essence in positive trends. The four regions have all seen significant percentage gains in home sales. Although, the Midwest stands out with 39.4% gain over November 2015.
When it comes to home sales types, what we’ve seen in November contrasts somewhat with what we’ve seen in October. For example, 16% of home sales involved homes valued at $500,000 or more. 14% came valued at less than $200,000. October saw the opposite, with almost twice as much sales of homes worth under $200,000. Less homes were sold valued at $500,000 plus. As a result, while home sales types can fluctuate often, the overall sales indicator remains quite healthy as we approach 2017.
New home sales spiked in November with high demand in 2016, underscoring the year’s positive report card. Although, the demand for new homes this year, was met by a supply shortage. Builders will need to keep pace. In fact, the positive indicators we’ve seen should be incentive enough to kick into high gear. We are already seeing many builders preparing for plenty of activity in 2017. Although, they may still lag with respect to the demand. As a result, home prices have crept up with the supply shortages in view.