Sales Continuing to Climb

New home sales in May were the strongest in two years. This could suggest a modest housing recovery for the battered real estate market.  In late June, the Commerce Department said that sales of new homes increased by 7.6% in May from Aprilto a seasonally adjusted annual rate of $369,000, which is the best pace since April 2010. This is significant because that was the deadline for consumers to take advantage of the $8,000 housing tax credit. Sales aren’t the only signs that things are getting better in the housing market – builders across the country are building more homes. Inventories of new homes are near all-time lows. But it’s not just new homes that are doing well. In Miami, a mini-condo boom is taking place as investors from overseas are looking to put their money into good real estate investments.

At NAR Midyear in Washington, D.C. in May, NAR Chief Economist Lawrence Yun personally told me that the first quarter of 2012 was the best quarter we have seen for transactions in five years. In April, prices rose in most of the country. The Case-Schiller Index reported that U.S. home prices rose by 1.3% for the month. Record low interest rates and fewer bank-owned properties being sold helped with sales volume and appreciation. So does this mean that it’s time to prepare for another housing boom? Many experts say not to get excited yet.

Most experts agree that things are indeed getting better for housing. This is great news for homeowners and real estate professionals. These same experts also warn not to get too excited yet, as the recovery process will be long and slow. There are many other factors that will come into play in the coming months: the Presidential elections, interest rates, the European Crisis, and China’s reported slowdown are just a few factors that could cause a setback.

Additionally, this year has been the strongest year for real estate sales since 2007, which is significant for homeowners, buyers and real estate professionals, because this stability and confidence can drive a real estate market up. With the controls that have been put in place to prevent future housing crashes, things are looking very bright for the housing market.

What do you think? Send us your two cents below in our comments.

Joe Sesso

Joe Sesso

Joe is an award-winning author for his book The Foreclosure Revolution, and he has produced investment training manuals and CD sets on real estate, investing and foreclosures.He has been a real estate professional since 2000, and has both a Bachelor's degree and MBA from Indiana University, as well as a Masters of Global Management degree from the prestigious Thunderbird School of Global Management. Joe Currently lives in Chicago.
Joe Sesso

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12 thoughts on “Sales Continuing to Climb

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  3. At today’s Market, most of my investors are buying Houses from me at the Auction for a flip.
    After we acquire the property, we fix it , others don’t need fixing maybe only just a cosmetics like painting, etc. and put it back on the market, since the price of the houses are going up, so this is really a very lucrative business someone has to look at. In Seattle,WA alone, there’s at least 200 Houses that goes into auction every Friday at a deeply discounted prices (40 %- 60% below market value ) To learn more please email me at: mrgvega@gmail.com or call 425-765-4769

  4. I HAVE A PROPERTY AT 12 THORNELL AVE EAST WALPOLE, MA 02032. ITS ALREADY ON MLS. CAN YO LINK THIS TO YOUR SITE TOOS. 781 290 6000. THANKS

  5. The Houses in Florida are extremely cheap right now, Waterfronts for 100,000 dollars, with pools. It is Hurricane Season, you can steal them for the next two months. El Nino is here again, The Germans have been buying the majority of them, 90% because of there fear of Bank Failures in Europe and because of the Wars in the Middle East. The Euro is going to fail, it is just a matter of when, they catch the bankers stealing.
    Cities in Florida have 30 foreclosues per day, most get bought as SHORT SALES.

  6. In our local market the recovery is definitely in full swing. Inventories are at multi-year lows. Interest rates are close to all time lows and it is our high season in Portland Oregon. Real estate is HOT.

  7. Everything in Southeast GA has definitely picked up in 2012, but the Fall sales will tell the tale. If we stay strong in our volume of sales we will have turned the corner. The Economy is still a big controlling issue.