September Home Sales Continue Modest Gain
Posted on November 1st, 2016
September saw the sale of 593,000 new homes, up 3.1% from
August and up nearly 30% over this same time last year. However,
September of 2015 marked the lowest month for home sales of that year,
while September 2016 marks the second-highest for this year.
According to a joint release by the
US Census Bureau and Department of Housing and Urban Development,
inventory of new, single-family homes remained flat at 235,000 units.
This translates into rising upward pressure on prices in a market where
sales are gaining. Prices for new homes rose 3.5% from August and 1.9% from last September. According to the report, the problem seems to be blamed on two factors: 1) too few developed lots and 2) a shortage of skilled labor. To quote directly from the report, " both sales and inventories remain depressed by historical standards but the level of inventory given the pace of sales is in line with historical norms as builders balance caution and available resources in their efforts to meet expanding demand."
2016
promises to close out its final quarter strong, but the construction
industry needs more workers if that is to remain into the future.
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