New home sales up from last year

Newly-constructed single-family homes are up 18 percent in June 2015, compared to the June 2014.

The findings, recently released by the National Association of Home Builders (NAHB), reported that 482,000 new homes sold in June 2015, compared to 408,000 new homes in June 2014.

Although new home sales were down slightly at 6.8 percent, from May 2015, NAHB confident new home sales will continue to improve, as they have been on the rise since 2012. NAHB expects new home sales to continue to improve throughout the rest of the year and into 2016.

In the existing housing market, the June report showed a decline of 1.8 percent for sales. However, the June 2015 report is up 8.2 percent from June 2014, so the housing market overall continues to improve overall.

NAHB pointed that growth with existing home sales helps the new home market, as “move-up buyers” may turn to new homes or remodeling.

The NAHB Remodeling Index (RMI), an industry confidence reading, went up  two points to a level of 59 for the second quarter. “Any level above 50 indicates that more remodelers report market activity is positive. The RMI has been above 50 for nine consecutive quarters,” the report stated.

“Strong job gains are bolstering housing demand. Rising builder confidence, housing starts and low interest rates all point to continuing recovery in the housing sector, even as industry headwinds, including access to lots and labor, will produce bumps along the road,” NAHB stated in the release.

However, the lower percentage of first-time buyers has decreased the nation’s home ownership rate to 63.4 percent, the lowest it has been since 1967.

Yet, the number of overall households, either renting or owning, has increased.

Overall, increased growth in the economy for the second half of 2015 should help both existing home sales and new home sales.