If you aren’t in the market for a new home, why should you care about the new homes market? Well, for starters, it plays a significant role in the health of the housing market. And that affects all buyers, not just new home buyers.
How? Simply put, construction is the quickest way to add new houses for sale to the market. And, when builders add more homes, buyers can be more choosy, which results in less competition and fewer home price spikes.
In other words, when new homes are being built and sold, the overall real estate market benefits, including buyers looking for an existing home in a more affordable price range.
So, if that’s true, how is the new homes market doing?
According to the latest numbers from the U.S. Census Bureau and the U.S. Department of Housing and Urban Development, new home sales were 11.6 percent above last year’s level in April, which is good. But, though year-over-year numbers are positive, recent revisions to totals from the first three months of the year were revised downward, indicating some lingering weakness in the market.