New Home Sales Down, Prices Rising
Real Estate, like all other forms of business, is affected by supply and demand. When there is abundance, prices are lower to clear the inventory. Scarcity brings the opposite effect. For example, we are all familiar with gas prices. When refineries are offline due to a storm, less gas is manufactured and prices rise immediately. The same is true in real estate.
The sale of new homes in the U.S. is at its highest level in 2 ½ years. In the past year sales have risen 27.1%. For now, until builders step up their production, these sales are keeping the inventory low. There were 145,000 new homes for sale at the end of September, near the record low of 143,000.
At the current pace of sales, that level of inventory would be exhausted in 4 ½ months. This is the lowest level since October 2005. According to economists, that could push up home prices in the coming months.
To keep up with this demand builders are stepping up their construction of new homes. They broke ground at the fastest pace seen in four years. There was also a request for more building permits then we have seen in the last four years. This is a sign that many are confident the new home sales pace will continue into the future.
New City Real Estate can help you find new and used homes in Greenville. As the 'new home market' is experiencing less inventory due to an increase in buying, prices may begin to rise even more. This is an excellent time to find the home of your dreams! New City Real Estate is committed to finding you exactly what you need in the Greenville market. Contact a New City agent if you have any questions about Greenville homes.