Home sales are on the rise and selling at a rapid pace, not just in Ocala but across the entire U.S. A recent report by the Commerce Department reveals that new home sales jumped 16.6 percent last month to a seasonally adjusted rate of 619,000, up from a revised total of 531,000 in March.
The jump in home sales can be attributed to steady job gains and historically low mortgage rates, making it easier for Americans to break (back) in to the housing market, even with the steady climb of home prices.
Sales of existing homes rose in April for the second straight month at an annual pace of 5.45 million, a number that is indicative of a strong and flourishing economy. Existing homes make up approximately 90 percent of the housing market.
There have been concerns that we are potentially on the brink of another burst of the housing bubble, however the primary reason housing prices are skyrocketing is because of the incredibly low inventory, or lack of supply. With demand on the rise, so has the rate of new home construction increased, which is up 6.6 percent to a seasonally adjusted annual rate of 1.17 million homes in April.
With construction increasing at a rapid pace, investors are taking note and are interested in any company that is part of the nation’s housing boom. Shares of homebuilder DR Horton rose 4 percent and shares of KB Home rose 5.5 percent. Home building supplier Masco Corporation rose 2.5 percent and American WoodMark Corporation rose 4 percent. Home Depot and Lowe’s both had huge first quarter numbers and hit all-time highs this month.
For more details on the surging housing market in Ocala and around the country, read the full article at ocala.com.
