17 Dec Home Sales Increase While Builder Confidence Continues to Rise
A surge in demand has helped to drive prices higher, but has also diminished the supply of homes. In October, inventory was down 1.4% from the previous month, and 2.14 million homes were listed for sale. Many sellers are realizing that the market has shifted in their favor because of the increase in demand and the short supply of homes. Home owners are now getting more for their homes and are entertaining multiple offers.
In addition to existing home sales, builder confidence is also on the rise thanks to improvements in the economy and housing sector. According to Barry Rutenberg, a home builder and chairman of the builders group, “Builders are reporting increasing demand for new homes as inventories of foreclosed and distressed properties begin to shrink in markets across the country. In view of the tightening supply and other improving conditions, many potential buyers who were on the fence are now motivated to move forward with a purchase in order to take advantage of today’s favorable prices and interest rates.”
The National Association of Home Builders/Wells Fargo Housing Market Index, a survey that measures home builder confidence, rose five points in November, marking the seventh straight monthly increase.