New home builders are happy with what is happening in the economy right now. In July, United States new home sales reached their highest level in nine years. The Commerce Department said the increase was a seasonally adjusted rate of 12.4 percent for 654,000 units sold.
The sale of new homes is making up for a national decline in Existing Home Sales in July. The National Association of REALTORS® reported that sales of previously owned homes slipped due to low inventories and higher prices. July Existing Home Sales fell 3.2 percent from June to an annual rate of 5.39 million units, below the 554,000 expected and down 1.6 percent from a year ago. Inventories are now at a 4.7 month supply, which is nearly 6 percent below last year.
The median existing home price was up 5.3 percent from July 2015. This tells sellers it is still a good time to sell particularly in Central and East San Diego County where we don't have many new home choices.
