New-Home Sales: August, 2014
Sales of newly built, single-family homes increased 18 percent in August to a seasonally adjusted annual rate of 504,000 units in August, the highest level in six years, according to newly released data by the U.S. Department of Housing and Urban Development and the U.S. Census Bureau. Regionally, new home sales rose 50 percent in the West, 29.2 percent in the Northeast and 7.8 percent in the South. Sales were unchanged in the Midwest.
“This jump in sales activity is in line with our latest surveys, which indicate builders are seeing increased traffic and more serious buyers in the market for single-family homes,” said Kevin Kelly, chairman of the National Association of Home Builders (NAHB) and a home builder and developer from Wilmington, Del.
“This robust level of new-home sales activity is a good sign that the housing recovery is moving towards higher ground,” said NAHB Chief Economist David Crowe. “Historically low mortgage rates, attractive home prices and firming job and economic growth should keep the housing market moving forward in 2014.”
While the housing market continues its march forwards through the new year, lenders are trying to meet demand as new-home sales require buyers to seek competitive mortgage loan rates. Many buyers, including individuals in California, will find that the requirements set by banks for conventional home loans fall out of reach. The good news is there are alternative financing options for those looking to buy a new home. Private money lenders such as HML Investments offer loan programs such as hard money and stated income loans targeted towards trustworthy borrowers that lie outside the purview of conventional banks.
For more information regarding residential home loans, contact the specialist at HML Investments today.