Sales of new U.S. homes jumped nearly 14% in June, the Census Bureau reported Friday, as the number of purchases hit a 13-year high.
The report shows that 776,000 homes were sold last month. That level of purchases has not been seen since July 2007, when 778,000 homes were sold.
June sales are also up nearly 7% from July 2019. Sales in the Northeast experienced an 89% increase from the prior month, while in the South, where many states are suffering spikes in coronavirus cases, sales were up only 7%.
The census report beat expectations as economists expected sales in June to increase 4% with only 700,000 units sold. Sales in May were revised up, from 676,000 units sold to 680,000.
The median sales price in June for a new house was $329,000, which is up from the annual median price in 2019 of $321,500.
The housing market came roaring back in June, as low mortgage rates and increased economic activity helped push sales of previously owned homes up 20.7% from the prior month.
Demand was strong from apartment renters seeking more space, young families moving to the suburbs and wealthy city dwellers looking for second homes, brokers and economists say. At the same time, the supply of houses for sale remained low, as the pandemic has made potential sellers cautious about letting people tour their homes.
Existing-home sales rose in June to a seasonally adjusted annual rate of 4.72 million, the biggest monthly increase in records going back to 1968, the National Association of Realtors said Wednesday. The June sales marked a 11.3% decrease from a year earlier.
The median existing-home price rose 3.5% from a year earlier to $295,300, NAR said. There were 1.57 million homes for sale at the end of June, up 1.3% from May and down 18.2% from June 2019. At the current sales pace, there was a 4.0-month supply of homes on the market at the end of June.
Existing-home sales rose the most month-over-month in the West, at 31.9%, and in the South, at 26%, according to the NAR data.
Meanwhile, we’re a part of those strong sales numbers here in Mohave County. Every day brings more sales, and we truly haven’t seen this much activity since the heady days of 2005-2007.
Land sales are greatly improved, and there finally is some upward pressure on land prices here in the Yucca area, but still too many properties that were purchased as tax liens, or inherited & where the owner doesn’t care about price, and just wants a fast sale.
What’s most encouraging to me is the interest from agents outside of the area, who have been mostly missing for years. The bad news is that many from outside of the area list out here with only a picture of a map and sketchy, missing, or incorrect data. It hurts the market as sellers become desperate over time, and are more inclined to accept fire sale prices. It seems unfair that poor service that hurts our market and sellers can be allowed, but such is the market today.
If you dream of hitting the open road with a house on wheels, you may be thinking about buying an RV, or recreational vehicle. It’s an especially alluring idea these days.
According to the RV Industry Association, between 9 million and 10 million people in the United States own RVs—1 million live in them full time. And the demand for RVs has substantially increased in the wake of the coronavirus pandemic.
“Not only are we hearing from RV dealers across the country that their sales are up compared to last spring, but new research shows that 1 in 4 Americans intends to take some kind of RV-related action in the next 12 months—such as taking an RV trip, buying or renting an RV, even visiting an RV dealership,” says Craig Kirby, president of RVIA.
Part of the draw of RVs is that they allow people to vacation with their families without risking exposure to COVID-19 by boarding a plane or entering a hotel.
We are seeing more and more folks that want to have a desert getaway in case things get dicey again. There really is a rush to Mohave County, and to places away from the big cities. Anecdotally, around the country we are hearing of homes that had languished before being out and away from town, but suddenly there were three offers.
It bodes well for sales, and we welcome the new “refugees;” welcome to our world. Please be careful out there, the desert is unforgiving.
We’ve dreamed of having an RV for years, and almost came close to pulling the trigger in 2005, but happily waited.
I think of RVs as a hot potato, that is, you buy it when you need it, and sell it if for any reason you’re not going to use it. The depreciation curve is steep, and waiting a year can make a difference.
On the other hand, it seems that after 20 years, the value has plunged enough so that if one is diligent, one can encounter some real low mileage gems for under $10,000. What’s not to love?
Leaving your RV out on the dirt in the desert is not advised for long term without at least occasional inspections to prevent pack rats, mice, and other varmints form moving in to your lovely “homestead.” Get to know your neighbors, and with any luck they can stop in every once in a while and keep an eye. Often, just a well worn driveway will discourage thieves.
and don’t forget the septic… Ben
This one made me laugh, as good comedy does, there’s a lot of truth in it. Welcome to rural America! You’re in for a few surprises. Click to read. It will be an education for the city folk, and a laugh for us out here in the country.
City living may have its perks, but combine the congestion and crowds with the threat of the novel coronavirus, and it’s no wonder that many city dwellers these days are fleeing to greener pastures (or thinking about it).
But what is it really like to transition from the hustle and bustle of a city to the more relaxed pace of rural life? As a New Yorker who bought a summer cottage with my husband in upstate New York six years ago,
I’ve come to realize that country life isn’t always so serene. In fact, certain things have happened out yonder that make me very glad that we’ve kept New York City as our main residence.
A combination of the coronavirus pandemic, economic uncertainty, and social unrest is prompting waves of Americans to move from large cities and permanently relocate to more sparsely populated areas. The trend has been accelerated by technology and shifting attitudes that make it easier than ever to work remotely.
Residents of all ages and incomes are moving in record numbers to suburban areas and small towns. A perfect storm of factors makes the decision to leave major cities like New York very obvious. The dense nature of urban living and the lack of proper local government planning led to the coronavirus spreading five times faster in New York than the rest of the country. The city that never sleeps now resembles a ghost town in many areas after thousands of its wealthy and middle-class residents fled early in the pandemic.
h/t to hardscrabblefarmer
We’re seeing the biggest uptick in sales since 2008. After years of little interest in rural, remote properties, interest has never been higher.
In the cities (Kingman, Lake Havasu, and Bullhead) many properties are selling within a day of being listed. We’re back into bubble territory, but with interest rates being at historical lows, the mini boom looks to continue.
Meanwhile, land prices are finally seeing upward pressure on prices, so now is a good time to get yours before it’s too late. Call now!
Here’s something different. The Invisible House. Click on the link for the full article. It can be rented!
If you’re looking for an ultra-secluded getaway, why not simply disappear into the Invisible House?
A mirrored modern building, the vanishing dwelling blends in seamlessly with its desert surroundings. The shimmering surface reflects the natural beauty of the land and renders it a part of the landscape.
Located adjacent to Joshua Tree National Park, it’s the sleekest desert getaway we’ve ever seen.
The eye-catching architectural wonder can also be rented out for short-term rentals, special events, and film shoots.
A vision began 14 years ago with desert land purchased by Hanley and his wife, Roberta. The Invisible House is the end result of a six-year project to create an environmentally sustainable and artful living space.
A cantilever system ensures that the structure leaves a minimal footprint on the desert ground. Smart and sustainable, the home includes solar and thermal systems.
Set on 90 acres, this is the largest privately owned parcel of land to abut Joshua Tree National Park, according to the property’s website. It is also just 10 minutes from the shops, hotels, and restaurants of downtown Joshua Tree, and a two-hour drive from Los Angeles.
Here’s the drone video:
Contracts to buy U.S. previously owned homes rebounded by the most on record in May, suggesting the housing market was starting to turn around after being hammered by the COVID-19 pandemic along with the rest of the economy.
Other data on Monday showed an improvement in manufacturing activity in Texas in June after three months of record or near-record declines in output. But surging infections of the respiratory illness in many regions, including the densely populated Texas, Florida and California, pose a risk to the nascent recovery. The economy fell into recession in February.
The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, surged 44.3%, the largest gain since the series started in 2001.
Still, contracts remain 10.6% below their level in February before businesses were shuttered in a bid to slow the spread of coronavirus, almost grounding the economy to a halt.
Economists polled by Reuters had forecast pending home contracts, which become sales after a month or two, rebounding 18.9% in May.
Pending home sales fell 5.1% from a year ago. Home resales tumbled to a more than 9-1/2-year low in May. Economists believe the housing market could emerge more quickly from the recession, which started in February, thanks to historic low interest rates.
The Houston Association of REALTORS® says it will stop permitting the term “master bedroom” or “master bathroom” to be used in MLS descriptions. The decision to remove the term comes after a group of real estate professionals said the term “master” on property description represents a potential stigma.
HAR has updated the phrase to “primary bedroom” and “primary bath” on its MLS and on har.com. The national standards organization for MLSs is reportedly considering a similar change that would make “primary” the new standard nationwide.
“‘Master’ represents a stigma and place in time that we need to move forward from,” Tiffany Curry, a Houston real estate broker and owner of Berkshire Hathaway HomeServices, told the Houston Chronicle. “As a progressive, diverse city, Houston should be reflective of its citizenship.” Some home builders are dropping the term, too. David Weekley Homes now refers to the space as the “owner’s retreat” instead.
The National Association of REALTORS® told the Houston Chronicle that the U.S. Department of Housing and Urban Development has advised the association that the term “master bedroom” is not discriminatory and that its usage does not violate any fair housing laws.
Stupid is as stupid does. Seeing idiocy like this makes the case for the public to think realtors are just a cut above the old school car salesmen (or worse.) Uh oh, don’t get me started. I’ve been around too long & have seen too much.
I mean really, are you kidding me? Pointless virtue signalling is demeaning to all true real estate professionals & our public, plain and simple. The public sees right through this ignorance and are equally disgusted. It makes us sound like another bunch of vapid politicians. Worse yet, it signals surrender to the mob that wants to end capitalism & abolish police. What’s next? Maybe we should end private property rights too, ’cause racist or something. I’m sure under the new socialism that commissions will be unfair too. You greedy capitalist realtors!
“Progressive” means let’s play silly word games instead of doing anything truly meaningful. “Progressive” means tear down our history & ignore daily killing in progressive cities while expounding on diversity. “Progressive” means doxxing, violent riots, and endless calls for more more more from the perpetually aggrieved. It’s a child’s game, played by children. The grownups have forgiven, and moved on. No one can win if the rules change every single day.
Moving to Houston? Stay away from any company silly enough to worry about stuff like this! Haven’t you heard? Get woke, go broke. Dumb, dumb, dumb….
Update: We have a winner! Tiffany Curry is our “Jackass of the Day” award winner. Congrats Tiffany!
The numbers: Sales of newly-built single-family houses occurred at a seasonally-adjusted annual rate of 676,000 in May, the government reported Tuesday.
That represented a 16.6% increase from the downwardly-revised pace of 580,000 in April. Compared with the previous year, new home sales were up 12.7% in May.
Analysts polled by MarketWatch had forecast new-home sales to occur at a seasonally-adjusted annual rate of 650,000 in May.
The Northeast experienced the most pronounced increase in sales, with a 45.5% jump, followed by the West (up 29%) and the South (up 15.2%). Sales fell by 6.4% in the Midwest.
The median sales price for new homes sold in May was $317,900. At the end of the month, there were 318,000 new homes estimated to be up for sale, which equates to a 5.6-month supply. A 6-month supply of homes is generally considered to be indicative of a balanced market.
A home at 38 Hawkeye Lane near Las Vegas is a concept home built like no other. The home measures in at a robust 5,501 square feet and is listed for $7.9 million.
The plot twist? Each piece of the foundation and framing traveled 4,766 nautical miles across the Pacific Ocean in one of 22 shipping containers from Japan. The project was conceived by Sekisui House, which is based in Osaka. The company is one of Japan’s largest homebuilders and purchased the American builder Woodside Homes in 2017.
The company now wants to wow American homebuyers with a touch of its signature style. And if you’re going to gamble on a cool concept, Vegas feels like the right venue.