New Homes Sales Fall in September

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Stories continue to try and assess what is truly happening in today’s real estate market.

The unsteady fluctuations in the real estate market are making optimistic predictors cautious about the future of the real estate market. A recent report from the Commerce Department is a case in point.

Sales of New Homes down from August

The U.S. Census Bureau and the Department of Housing and Urban Development recently reported that the sales of new single family homes were at a seasonally adjusted annual rate of 468,000 for the month of September. These estimates, jointly released by the two federal agencies, indicate a drop in the number of new single family homes that sold in August, affecting Oviedo real estate, Coral Springs real estate, and other properties across the state of Florida and the nation.

The recorded numbers of new single family homes sales in August registered 529,000. When compared on a month to month basis, the drop from August to September comes in at 11.5 percent (±11.3%); however when compared year to year, the numbers still show improvement.

Why the Drop

An analysis of the real estate market from month to month indicate why the drop may have occurred between these two months. An important clue is the median sales price.

In August, the median sales price on a new single family homes was 3 percent less than in September. The median sale price for a new home in September was $296,900, up 3% from August and up 14% when compared to September of last year.

The increase in prices reflect the fact that fewer builders are making affordable homes for first-time buyers.

Year to Year Numbers Still Up

The September 2015 numbers on the sale of new single family homes are higher this September than last.  The September 2014 report showed an estimated 459,000 new single family homes were sold during the ninth month of last year. This means sales of these types of new homes are up 2.0 percent year over year.

Although real estate analysts say 2.0 percent isn’t statically significant, it is relevant in showing which way the numbers are moved over the past year.

Other Relative Factors

The stock market plays a major role in home purchases, and buyers follow its highs and lows. In fact, stocks and home values have been on the same track since the real estate market peaked in 2006. Both plummeted together back in 2006 and have made the slow climb back up.

The stock market dips that took place in August slowed down high end buyers from choosing to buy Orlando luxury homes, Cape Coral luxury homes, and other similar properties. This definitely is one reason for the drop in sales of existing home sales.

With the stock market seeming to settle, new home sales could recover for the year’s end, but the real estate market may be reaching its ceiling on growth for the new home market, unless builders make their new homes more affordable.

Florida Realty News
Florida Realty News
Berkshire Hathaway HomeServices Florida Realty, a wholly-owned subsidiary of WCI Communities, has over 39 locations and more than 1,650 real estate sales professionals and team members serving 17 counties throughout Florida.
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