Industry Update- Real Estate and Economy Milestones

Industry Update- Real Estate and Economy Milestones

Posted 11/07/2017

September marked a major milestone for the real estate industry and the U.S. economy as a whole. According to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes rose 18.9 percent to a seasonally adjusted rate of 667,000 units.

September’s uptick represents the highest sales pace increase since October 2007, two months before the Great Recession began. The record-breaking month comes on the heels of a period of “soft” months, which had some experts, like Granger MacDonald, chairman of the National Association of Homebuilders (NAHB), warning builders to “manage rising supply-side costs to meet consumer demand for affordably priced homes.”

However, the year-to-date growth, which is 8.6 percent above the level over the same period last year, reinforces experts’ analysis that there is a growing demand for new home construction, and new home sales are making consistent, long-term gains.

As we round out the year, experts are optimistic 2018 will remain consistent with the conditions of the past few years in which moderate economic growth of around 2 percent, along with solid job gains and low mortgage rates, will persist