November was a good month for new home sales across the country. Newly constructed home sales posted a strong increase last month. The Commerce Department says new single-family home sales increased 5.2 percent in November. At Russ Lyon Sotheby’s, it looks like this trend will continue into 2017.
Last month, there was a 5.1-month supply of new homes for sale in the U.S. The average price was $250,000. The Commerce Department says the median sales price was $305,400 for new homes.
Whether it’s new homes or existing Russ Lyon Sotheby’s homes, higher interest rates don’t seem to be scaring buyers according to a new Redfin survey. Mortgage rates reached a two-year high last week. Despite that, only 2.6 percent of respondents say they’re postponing their home search. Twenty-five percent say the higher rates have no impact and 24 percent say they’re stepping up their home search before rates go higher.
Higher mortgage rates and home prices aren’t impacting first-time Russ Lyon Sotheby’s home buyers either. First-time home buyers made up 32 percent of the market in November, up slightly than a year ago. The National Association of REALTORS®’ (NAR) latest housing report also shows the annual share of first-time buyers was 35 percent in 2016, which is the highest since 2013 (38 percent).
With this group of buyers at Russ Lyon Sotheby’s, they’ll likely face tighter inventories of homes for sale. Inventory at the end of November was over nine percent lower than a year ago. NAR’s chief economist says supply was inadequate at the beginning of 2016. Heading into 2017 it’s even worse. If you’re looking to buy a Russ Lyon Sotheby’s home in 2017, it’s recommended you get pre-approved for a loan and start your home search early. While there are fewer homes on the market during the winter months, there are also fewer buyers.
Whether it’s a new home you’re looking for or an existing Russ Lyon Sotheby’s one, now might be the best time to find a home before interest rates go up again. Even though rates are at the highest in two years, they’re still at historic lows.