New us home sales up 15pc

Photo credit: Michael Patrick

Sales of new homes in the US have risen by more than 15 per cent in the last year.

New data from from HUD and the U.S. Census Bureau show that sales of new-build single-family homes hit an annual rate of 495,000 in October 2015, with sales this year so far running 15.7 per cent ahead of 2014.

"Our builders are reporting continued optimism in the housing market, and are adding inventory in anticipation of future business," says Tom Woods, chairman of the National Association of Home Builders.

"With a firming job market, affordable home prices, and rising pent-up demand, today’s report is another indicator that the housing market continues to move on a modest upward trajectory," adds NAHB Chief Economist David Crowe.

New-home sales were up in three out of the four regions. Sales rose 135.3 percent in the Northeast, 5.3 percent in the Midwest, and 8.9 percent in the South. Sales fell 0.9 percent in the West.

The single-family home figures follow growing confidence in the US condo and apartment market, with the NAHB's multifamily production index recording a positive result for 15th consecutive quarter in Q3 2015.

"Multifamily builders and developers continue to report that the market is doing quite well," comments W. Dean Henry, CEO of Legacy Partners in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. "We did see a slight rise in the MVI, primarily due to large supply coming online in the previous quarter, but with demand remaining strong we expect those vacancies will be absorbed."