Most statistics highlight the increasing amount of new homes being sold throughout the United States. However, much of the growth in the US real estate industry is due to sales of existing homes consistently increasing over the past months.
Sales of existing homes increased by 6.5 percent in July of this year, according to the National Association of Realtors. The trade organisation represents thousands of US real estate agents and frequently studies real estate market conditions.
Over 5.39 million homes are forecast to be sold during the next twelve months, the group claims. The estimates use a seasonally adjusted annual sales rate and return an estimated sales figure that’s 17 percent higher than it was in the last year.
Economists had predicted sales of approximately 5.15 million during the same year period, giving the industry a very health margin over predictions. The sales are the best the industry has experienced since the second quarter of 2007.
The United States housing market suffered heavily following a real estate boom and bust that left many homeowners with unaffordable mortgages and large properties that suffered from decreased valuations.
However, as a growing shortage of new homes develops, many homeowners have found that their properties are worth more than before. Less than 1 million homes are built every year in the United States, leaving many buyers with few choices.
Analysts believe that growth in the real estate market could increase the amount of new homes being built to more than 1.7 million per year, adding over 3 million jobs to the United States economy in the next two years.
Others have expressed concerns that the sale of new homes could slow as interest rates increase. Economists have noted that an increase in mortgage rates coupled with a shortage of new homes could increase prices further.
