Good news for home builders! New home sales increased 8.3% in June. Seasonally adjusted, this rate equates to nearly half a million homes sold, at 497,000. Despite a recovering economy, builders can be relieved, thanks to phenomenal improvements in the housing market.
According to the US Department of Housing and Urban Development, June’s 8.3% sales increase is the fastest pace of growth in the last five years. As a builder, you’re probably experiencing no trouble selling homes quickly. One caveat to this hot market is that inventory is low, at just 161,000 available units. This number translates into a 3.9 month supply, assuming the pace remains the same.
This July, builder confidence and remodeler confidence had risen by six points since last month. “Remodelers’ positive sentiment is directly related to increased demand for their services. Rising home prices are making remodeling jobs possible for more homeowners while existing home sales provide additional momentum as home owners prepare their homes for market,” explained National Association of Home Builders’ Chief Economist David Crowe. As builder confidence continues to rise, it’s important to be looking forward and to create a plan for your business to continue to benefit from this profitable “builder’s market.”
The next step is to look at opportunities for growth. Make sure you’re continuing to buy land and build quality homes. One way to create more profit for your company is to be found easily on the internet. Builder Designs recently completed websites for Logan Homes and Fischer & Frichtel. Take a look at their sites and you’ll see how easy it is for a consumer to find information about the homes they offer; since 9 out of 10 homebuyers are now finding their new home online, it’s imperative to have a functioning, up-to-date site to show off your inventory. Builders without an active, updated site are likely to miss out on much of the profit this market has to offer.
Builder Designs offers web design as well as SEO, hosting, interactive plat maps, mobile sites, and can get you to the front page of Google, among other services. If you want to stay competitive in this hot market while making a great profit, give them a call at 913-393-3367.
According to the National Association of Home Builders, “Three out of four regions saw solid gains in new-home sales activity in June, with the Northeast, South and West posting increases of 18.5 percent, 10.9 percent and 13.8 percent, respectively,” while the Midwest experienced an 11 point drop after an “above trend” bump in sales in May. Overall, new home sales are doing incredibly well and builders are moving inventory very quickly.
Learn more about the housing market at NAHB’s Newsroom.