General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsU.S. new home sales beat expectations in June
The Commerce Department said on Friday new home sales rose 13.8% to a seasonally adjusted annual rate of 776,000 units last month. New home sales are counted at the signing of a contract, making them a leading housing market indicator.
Mays sales pace was revised upward to 682,000 units from the previously reported 676,000 units. Economists polled by Reuters had forecast new home sales, which account for more than 10% of housing market sales, rising 4% to a 700,000-unit pace in June. (Reporting by Lucia Mutikani; editing by Jonathan Oatis)
Nothing further at link -
https://www.reuters.com/article/usa-economy-housing/u-s-new-home-sales-beat-expectations-in-june-idUSL2N2EU1UU
Just a smidge higher than January... which was the highest level new home sales have hit since the housing collapse.
JHB
(37,152 posts)People buying homes for themselves, or absentee investors buying up bargains?
FBaggins
(26,714 posts)I suppose that could include investors, but there is a huge gap in rates right now between such mortgages and purchase-money mortgages for primary residences. My guess would be that the factor you're considering isn't a large influence.
uponit7771
(90,301 posts)customerserviceguy
(25,183 posts)Some figure that C-19 (and its possible successors) will be less virulent in suburban and rural settings, some probably want to get out of highly urbanized areas. With being able to work remotely actually working out for a lot of people, I see the trend continuing.
No "bargains" yet until the foreclosure moratoriums have been lifted for a few months.
RazzleCat
(732 posts)If you have the money (job), it makes total sense. I will guess that many persons in a more crowded cities/towns, are moving to less dense population areas to avoid/lower your odds of getting covid. Toss on if you have kids, getting a yard, or larger yard with all the social distancing makes sense, trapped in a small space with kid/kids could drive one crazy.
FBaggins
(26,714 posts)Far more new construction exists in the suburbs away from large cities. I assume that COVID is resulting in some amount of migration away from large cities (particularly for people who no longer need to commute to the city to earn those higher salaries). They're also likely to be in the best position to afford newer homes (which are more expensive than resales, but still cheap compared to the cost of living in the city).
Having said that... historically low interest rates likely account for a big portion of the gains. Outmigration from cities is probably a multi-year or even multi-decade factor.
Ex Lurker
(3,811 posts)If you can't go to a restaurant, bar, or concert, what's the point of living there?
mnhtnbb
(31,371 posts)new home buyers. Mine is being built and won't be ready until December at the earliest. Giving up high rise downtown apartment for small house with a courtyard.
Johnny2X2X
(18,967 posts)People with good credit can get a sub 3% interest rate on a home right now, at face value that's great.
But I think both borrowers and lenders are making a miscalculation on the economy, it's going to be decimated for a long time and layoffs are going to be massive and continue for at least 12 months.
We're in a good home now, have some equity built up, no way would I risk buying right now and I think my job is safe for quite some time.
MissB
(15,803 posts)Selling and buying. Rates are great; we are thinking about retiring somewhere with property.
Dont know if we will do it.
happybird
(4,586 posts)Ive noticed a HUGE number of new cars with 30-day temporary tags driving around. Thought it was odd considering we are on the cusp of a depression.
uponit7771
(90,301 posts)... congress doesn't pass another stimulus bill.
2400 a month x 2 people + UE payments made saving accounts shoot up then Red Don opened shit up and people started spending like mad.
That level of money in the working class economy is going to change then the hurt starts.
uponit7771
(90,301 posts)... this time due to low rates that can't be sustained.
I just don't trust anything related to the Trump admin
customerserviceguy
(25,183 posts)then interest rates won't go back up, at least for awhile, anyway. I figure we're only a couple of months away from having that happen, especially if there is no stimulus bill. And if there is, then we've just kicked the can down the road until after the election.
tinrobot
(10,882 posts)If you were on the verge of buying a house, this might be the time.
onethatcares
(16,161 posts)with the way unemployment is being handled is there any reason to believe the numbers aren't being cooked? The retailers that are closing aren't coming back, the call centers aren't coming back, and the growth industries have reduced their employee load so it would seem to me that the mortgage at 3% is a great deal if, and that's a big 'IF' the recovery is sustainable over the spectrum.
A low interest don't mean nothing if you can't afford the monthly payment.
FBaggins
(26,714 posts)If you aren't currently unemployed... you're unlikely to lose your job at this point. It's more likely that the job you have now allows you to work from home (which very often means that you can move somewhere else and continue your job).
As for the legitimacy of the figures? Cooking of the books in any substantial way is highly unlikely. In this case not just because of the process involved and the career government workers who perform it... but also because independent data (realtors, etc.) would contradict it.
tinrobot
(10,882 posts)We just did a 3% mortgage. A pay stub from two weeks ago wasn't enough for the bank, even though I'd been at the job for over 5 years. I had to have HR call the bank to tell them I hadn't been furloughed or laid off. Never saw anything like that, not even after the '08 crash.
No way an unemployed person would get qualified