10 Year High Reached On New US Home Sales

In a sign that is considered unexpected as well as a good sign for the construction industry, the sale of new homes purchased by Americans was finalized at the fastest rate in over 10 years.  The Commerce Department is reporting that new-home sales last month rose to a seasonally adjusted annual rate of 685,000 and is a 6.2 percent monthly increase.  This is the highest sales volume for new construction since October of 2007.

As reported earlier, because of the lack of existing homes many Americans are now looking for new construction to suit their need for housing.  The shortage of housing has also increase the sales price of a new home.  The average sales price of new construction homes increased 13.6 percent year over year to $400,200.

There is a 4.9 months to clear the supply of houses on the market.  This is the least amount of housing since July 2016 and down from 5.2 months in September. A six-month supply is viewed as a healthy balance between supply and demand.

Leading the way on new construction sales is in the Northeast.  New single-family homes sales increased by a whopping 30.2 percent in the Northeast.  This is also the highest levels since October 2007.  It is now being suggested that the three month increase in new US home building along with an increase in existing home sales there is a rebound in the housing market.  Housing for the year has been considered hampered by the shortages of housing, hurricanes in the South as well as the unavailability of skilled labor and land.   The new report may indicated that housing is gaining momentum going into 2018.

If you are interesting in purchasing a new construction and in need of property management than Blue Harbour Property Management can be of assistance.  We are a full-service NYC property management company servicing Queens, Brooklyn, Manhattan and the Bronx.

http://www.blueharbourpropertymanagement.com/10-year-high-reached-new-us-home-sales/

Slowdown underway with Manhattan Real Estate Sales Prices. Buyers finding more Bargains

In a decline that the industry has no doubt seen coming, Manhattan resale home prices have declined the most in the last four years.  According to a Bloomberg article, the median price of previously owned condominiums and co-ops fell 6.3 percent in the fourth quarter from a year earlier to $900,000.  It was the first annual decline in this sector since the beginning of 2015, and the biggest since the third quarter of 2012.  Resales dropped 8.1% in that quarter.

This is a growing sign that sellers have diminished expectations for the quick sale and there will be a growing need for correctly pricing inventory to market needs.  The days of overpricing seem to be of the past as the number of resales has been dropping for the previous five quarters and buyers are are reluctant to invest in the more costly listings.

Corcoran Group reported that all completed sales, including previously owned and newly built homes, dropped 15 percent from a year earlier to 3,104. Signed contracts also slid 15 percent. Downtown Manhattan, below 34th Street through Tribeca, was an exception. Sales in that area climbed 11 percent to 983. Inventory jumped 33 percent to 1,826 listings, according to the brokerage.  Also, previously owned properties that sold in the period spent an average of 80 days on the market, up from 71 days a year earlier. It has also been reported that Manhattan resale deals totaled 2,385 which is a decline of 1.5 percent.

Property management companies in Manhattan will have to invest more time in making sure accommodations and customer service are of value benefit as an additional incentive to buyers.  It will assist sellers in an accurate pricing method when sitting down with realtors and potential purchasers when the time is right.

http://www.blueharbourpropertymanagement.com/slowdown-underway-manhattan-real-estate-sales-prices-buyers-finding-bargains/

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