In a time of economic uncertainty and the upheaval of normal rhythms, we’re searching for hope for the future and reminders that life still presses on. Despite dramatic shifts in our economy, studies are showing unexpected economic resilience in the housing market for builders, buyers, and sellers alike.
Here are some promising statistics and helpful tips to keep in mind so you can proceed with confidence.
Housing Market
In May of this year, sales of single-family homes soared past last year’s seasonally adjusted rates by nearly 13% and reached 676,000, according to estimates reported by the U.S. Census Bureau and the Department of Housing and Urban Development. Those studies also revealed a 16.6% increase from the revised April estimate of 580,000, pointing to a housing and economic rebound with housing sales as a leading factor.
Housing Costs
Knowing that the market is prime for buying and selling, what are these homes actually going for?
Robert Dietz, Chief Economist for the National Association of Home Builders, announced that the median sales price of new houses sold in May was $317,900, which is an almost 2% gain year-to-year. The average sale price increased to $368,800. As far as new houses for sale, the end of May’s seasonally adjusted estimate was 318,000, which exemplifies a 5.6 months supply at the current sales rate.
Housing Factors
There are a few components to keep in mind when approaching the current housing market. While most home sellers are still apprehensive of the economy’s state coming out of the last few months, new home builds are leading in availability. Prospective homebuyers’ preferences have also shifted to more suburban or rural areas, due to the increased time spent at home and the desire for more space for families. Would-be buyers can enjoy record-low mortgage rates, even though touring homes may be unconventional for the time being.
Life may be shifting and changing in unexpected ways, but the swelling housing market presents an opportunity for hope in economic rebuilding. At Small Business Growth Partners, we can help you develop strong internal operating systems that will prepare your business for growth in the housing market. Our model caters to the unique needs of the custom and semi-custom homebuilders. To learn more about our services, request some free information on our BPA process.
