New home construction jumps, raising hopes for better housing market
A new report from the U.S. Department of Housing and Urban Development shows that new home sales rose in August, signalling a possible recovery in the housing market. The number of new homes sold rose by 22 percent from July to August, with single-family homes accounting for nearly 80 percent of the sales.
The jump is being credited to low mortgage rates, with many buyers taking advantage of the historic low rates. Low mortgage rates are encouraging potential buyers to act quickly, before the rates start to rise again.
The spike in new home sales is good news for builders, as the new homes will help to keep construction costs low. This may also help to drive down the overall cost of housing in many areas, making homeownership more attainable for many people.
The report also showed an increase in housing starts, indicating that homebuilding is on the rise once again. This could lead to a surge of new construction and an increase in the amount of housing available on the market, which could also help to reduce prices.
Overall, the news of a jump in new home sales and an uptick in housing starts is a positive sign for the health of the housing market. The next step is to see if these gains can be sustained, and if the market is finally on the mend.