NYC Developer Blames "Summer Doldrums" for Lackluster Growth, Then Surprises Everyone with 20% Surge in New Home Sales for Summer's End
According to the latest monthly new residential sales report, there was a significant spike in new home sales and moderate gains in price for the end of summer, despite previous slow growth in the housing market.
After months of sluggish growth in the housing market, many industry experts were predicting a lackluster end to the summer. However, the U.S. Census Bureau and Department of Housing and Urban Development (HUD) have just released their monthly new residential sales report and the results were surprising.
In August, there was a 20% surge in new single-family home sales, totaling about 800,000. This is a significant increase from the previous month and a welcome change for many developers and real estate firms.
One developer in particular, based in New York City, seemed to have a change of heart regarding the "summer doldrums" that were previously blamed for slow growth in the market.
"We were expecting a slow end to the summer, but clearly the demand for new homes was still there," the developer stated. "It just goes to show that the market can surprise us sometimes."
Despite this positive news, there were still moderate gains in price for new homes. The median sales price for new homes in August was $330,600, only a slight increase from the previous month.
While this surge in new home sales is certainly good news for the industry, some are still cautious about the overall health of the housing market. With rising interest rates and uncertainty about the economy, it remains to be seen if this trend will continue into the fall and winter months.
Only time will tell if this surprising summer surge was just