"Combined with consistent positive reports on housing starts permits prices and builder confidence in recent months today's data provides further confirmation that a gradual but steady housing recovery is underway across much of the nation" says Barry Rutenberg chairman of the National Association of Home Builders (NAHB) and a home builder from Gainesville Fla. "Consumers who have been on the sidelines during the past few years are deciding now is the time to go forward with a new-home purchase assuming they can qualify for a good mortgage under today's exceedingly stringent guidelines."
"New-home sales this year have consistently and significantly out-paced their year-ago levels as favorable interest rates rising prices and improving consumer confidence have driven demand higher" notes NAHB Chief Economist David Crowe. "Meanwhile despite a small increase in the inventory of new homes on the market in September the number of completed new homes for sale is now at an all-time low and the month's supply is at its tightest since October 2005. This is an indication that builders continue to have a tough time obtaining construction credit even as demand for new homes increases."
Three out of four regions registered substantial gains in new-home sales this September including the Northeast's 16.7 percent increase the South's 16.8 percent increase and the West's 3.9 percent increase. The Midwest was the exception to the rule with a 37.3 percent decline.
Meanwhile the inventory of new homes for sale inched slightly upward to a still-low 145000 units in September which is a 4.5-month supply at the current sales pace.
For more information visit www.nahb.org.