This morning Rick Santelli reported a surprise ~17% uptick in new home sales for last November. It is my opinion that the December sales report may be even better. As real mortgage interest rates decline, and as the Federal Reserve signals it will remain neutral with future rate increases, home sales are responding positively.
Benzinga is reporting that an industry analyst is turning more bullish for builder stocks in 2019, suggesting a modest correction to the upside for home builders.
If you put off buying, you might want to reconsider. Banks are competing for your mortgage business and that has driven rates down from their 5% peak last year. New home prices, although still rising as a result of rising land, labor and material costs, have held the line on price increases. How long that will continue is anyone's guess.
Mike Askins, Realtor, Owner ARG
Got questions for Realtor Mike? Call me at 214-727-3686 (mobile)