New Home Sales Increase for First Time in 7 Years
As has often been a worthy praise for much of 2012, the numbers achieved in the real estate market in a variety of sectors far and away out performed the figures realized in 2011. According to the U.S. Census Bureau, when looking to the new home market, these single-family home sales spiked a great deal by 19.9% over 2011 with upwards of 367,000 sold in 2012.
Not in seven years has the real estate market across the United States seen an increase by such a lofty margin. As a matter of fact, it has been that long since an increase at all even by the slimmest of margins has been achieved. Therefore, this 19.9% hike up is certainly worth taking note of.
Despite this optimistic achievement, the final numbers of new single-family homes sold was the third lowest all-time since the U.S. Census Bureau has been keeping track of these findings back in 1963. The two years that performed worse, one might wonder? 2010 and 2011. With that said, despite the perhaps historically lower number in 2012, the fact that such a dramatic turnaround for the better over the past year only furthers the claim that 2013 will continue to push on and progress with this momentum.
Transitioning to the median sales prices, these too came back with flourishing results. An increase of 9.6% to $248,900 occurred when looking at 2011 and 2012s year-over-year statistics. On a more reduced scale, from November of 2012 to December, there was even a 1.3% climb in median sales prices which was seen as a promising platform for the end of the year and leading into this new calendar.
The amount of new homes on the market come the end of last December was 151,000, this hitting a 4.9 month supply. Expert Bill McBride, referring to the total sales for 2012, noted that these positives should continue to build in a major way, "My guess is sales will rise to around 800,000 per year in a few years, but others think the next peak may be lower, perhaps closer to 700,000." Improvements from 367,000 to the possibility of more than doubling new single-family home sales in the not so distant future just provides further justification that the real estate market is indeed headed down a prosperous road.
| Year | Sales (thousands) | Percent change in sales |
| 2005 | 1,283 | 6.7% |
| 2006 | 1,051 | -18.1% |
| 2007 | 776 | -26.2% |
| 2008 | 485 | -37.5% |
| 2009 | 375 | -22.7% |
| 2010 | 323 | -13.9% |
| 2011 | 306 | -5.3% |
| 2012 | 367 | 19.9% |
More Information: Inman News
