New Home Sale Rise to Highest Level since 2010. That was when the First Time Home Buyer Tax Credit was in place and buyers rushed to buy homes and qualify for the credit.
We are seeing it everywhere here in Metro Phoenix. Prices are rising, subdivisions are selling out and new ones are starting.
I have a Meritage home under construction for Mary and Lew. It is scheduled to be completed the end of November. When they purchased prices had just been raised by $5,000. Since then, the base price is up another $11,000. Mary and Lew are happy they stepped up when they did.
In 2011, there were about 7,500 new homes built in the Metro Phoenix area. This year they expect to build around 12,000 new homes across the valley. Projections for 2013 are now topping 20,000 new homes built. The great thing about construction is it adds jobs all over. I read Warren Buffet said, “We’re selling a lot of furniture and carpet” right now, he said Wednesday on “Squawk Box.”
For every new home built they project it will create 3 jobs. By increasing new home construction by 7,500+ over the next year that should create over 22,500 jobs. The biggest question is “Are there enough construction workers to fill the need?” So many are off to North Dakota and the oil boom that is creating construction jobs.
Well, only time will tell. It seems prudent that housing should pull us from this Recession since it caused the recession. What it was FRAUD that caused the recession, what am I saying!
Bloomberg business week article about new homes is HERE.
NEW YORK (CNNMoney) –– In another sign of a housing market recovery, new-home sales rose in September to the highest level in more than two years, according to a government report released Wednesday.
Sales sold at an annual rate of 389,000 homes in the month, according to the Census Bureau report, up 5.7% from the 368,000 sales pace in August. The last time sales were at this pace, in April 2010, they were being helped by a short-term home buyer’s tax credit.
The improvement in the market is part of a broader recovery in real estate, helped by a number of factors all coming together.
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