This article caught my eye because a large portion of the current slip in new homes seems to be related to the Tax Cut Bill and questions about interest rates.
New home sales fell 0.6 percent in February with 618,000 single-family homes sold during the month against the revised January rate of 622,000, according to the latest data on sales of new single-family homes released by the U.S. Census Bureau and the Department of Housing and Urban Development on Friday. On a year-over-year basis though, the sales were 0.5 percent above the estimated 615,000 homes sold in February 2017.
“New home sales slipped in February after January’s data was revised up to be much stronger than first thought.With the revision to January’s data, the past few months have shown strong national new home sales, driven by the West and South,” said Danielle Hale, Chief Economist at Realtor.com.
The median sale price of new homes sold in February stood at $326,800, while the average sale price was $376,700, the Census Bureau data indicated. Additionally, the seasonally-adjusted estimate of new homes for sale at the end of February was 305,000 representing a supply of 5.9 months at the current sales rate.
What is the reality about New Home Sales here in Northeast Georgia?
First and foremost it is the lack of affordable housing inventory. Yes, we know it is that way all over the country. The single most important thing to stress, especially to those who are under 40, is that even though we are seeing a rise in interest rates, we are at historic low rates. Take it from me. I lived through 18% (if you had really great credit!) during the Carter administration. We leveled out to around 7% in the early 1990’s. Yes, during the latest financial crisis we saw interest rates down in the low 3% range.
If you find a house that you want to call home, now is still the time to buy. Interest rates are not coming down any time soon. Contact us today and let’s discuss what steps you need to take in order to find your home now.