Home Sales Jumped 7.1% in August
Home sales are up. Home sales are down. So, what’s the real story?
Well, for August it was pretty good. Trade tensions and slower economic growth are giving new home buyers the incentive they need to jump into the market.
From AP News:
U.S. new home sales jumped 7.1% in August, as low mortgage rates pull buyers into the housing market.
The Commerce Department said Wednesday that new homes sales increased to a seasonally adjusted annual rate of 713,000, up from a revised 666,000 in July. So far this year, sales have risen a healthy 6.4%.
Trade tensions and slower economic growth have pushed down interest rates, helping homebuyers for the moment. But new construction has yet to meet the demand from likely buyers, so the sales gains could translate into higher prices.
August’s average sales price rose 6.1% from a year ago to $404,200, a record level not adjusted for inflation. Economists say there was a shortage of affordable homes available for purchase.