Home sales continue to rise

Now that the massive number of foreclosures on the market is drying out new-home sales is starting its run with the strengthening economy.  In July new-home sales increased by 40% in the Northeast and 18% in the South reaching the highest levels of sales since 2007.  You read that right, 2007, we are seeing pre-housing collapse numbers.  On Tuesday the Commerce Department stated that the demand for new homes has eclipsed the pace of construction.  Tian Liu, chief economist for Genworth Mortgage Insurance said that he sees tremendous potential for new-home sale growth as the demand continues to create a supply shortage of newer existing homes.  Construction companies throughout the East have add 215,000 jobs to their workforce and are still running behind the demand for new-home construction.

Though new-home sales does not directly impact or correlate to manufactured home sales it does show the potential for greener pastures in our industry as one of our two largest competitors, existing homes, are running in short supply and forcing Americans to either site-build or come see us.  Let’s hope with rising demands, millennial’s obsession with speed and efficiency, and consumer education that we will begin to ride the next great wave of home sales.

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