New Homes Sales Rise 6.4% in The Cliffs For April
2014 is starting to turn out to be the home of steady increases. In 2013 we saw a steadfast trend that made the The Cliffs real estate market bounce back immensely from the fall of 2008. The increase in prices rose approximately 13% during 2013 and 2014 has been a slowly but surely steady increase as well. Just announced today, new home sales have risen 6.4% for the month of April showing no signs of stopping the market as the summer months start to heat up.
Nationally, 407,000 new homes sold was the set pace for March, and April took that to the next level with 433,000. Originally, the Wall Street Journal economist even stated that April would only be seeing approximately 420,000 new homes sold. A modest 13,000 over the prediction is not a bad way to ease in to the upcoming hot summer months.
New single family houses are currently on the rise as the trends tend to show that most of the home buying and selling seasons increase dramatically in May, June, July, August and September. An increase in April is the perfect first act to our real estate play that is about to unfold.
Over the past few months, The Cliffs home prices have remained high while mortgage rates have priced many individuals looking to move or purchase their first property out of the market. With the recent fall of the mortgage rate to an astounding 4.14%, buyers are starting to come to the market with purchasing their new home in sight as affordability is becoming a mainstay of this current rate.
“The more reliable building permits data suggest that demand for new single-family homes bottomed out in the first quarter after a rate-related pullback in late 2013, and has resumed mild growth,” economists at Wrightson ICAP stated. Sales of previously owned homes has risen nationally as well up 1.3% this previous month to approximately 4.65 annually. As of right now, existing home sales takes a majority of the The Cliffs real estate market with an astounding 90% of all of transactions in the United States.
What is nice to notice though is that although the drastic increase that we saw last year helped to pick up the real estate market out of our current slump, the steady and every so slightly subtly increase month after month is a nice indication that the market is here to stay.