Real Estate Boom Continues Despite Historic Backlog
Despite facing an historic backlog in new home sales due to pandemic-related supply chain disruptions earlier this year, both existing and new home sales remain strong thanks largely due to low interest rates and increased demand from buyers looking for more space during these uncertain times
Dec. 24, 2022 2:35AM
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A bright red “For Sale” sign stands proudly against a backdrop of lush green trees outside a newly built suburban house
The real estate market is showing no signs of slowing down, despite a historic backlog in new home sales. According to the National Association of Realtors, existing home sales rose 5.6% in August compared to July and are up 11.4% from a year ago. This marks the highest level of existing home sales since 2006. At the same time, new home sales have been on the rise as well, with a 7% increase from July to August and an impressive 21.8% increase over last year’s figures. This is despite the fact that there is still a significant backlog of new homes waiting to be sold due to supply chain disruptions caused by the pandemic earlier this year. The surge in demand for both existing and new homes has been fueled by low interest rates, an influx of buyers looking for more space during the pandemic, and increased confidence in the economy overall. Low mortgage rates have made it easier for potential buyers to purchase homes they may not have been able to afford before, while those who already own homes are taking advantage of refinancing opportunities that can save them thousands each month on their mortgages. Realtors across the country are reporting that many properties are receiving multiple offers within days or even hours after being listed on the market—a sign that buyers remain confident about investing in real estate despite current economic uncertainty. Buyers should be prepared for stiff competition when searching for their dream home but also know that they may be able to find deals if they act quickly enough and are willing to negotiate with sellers on price or other terms such as closing costs or repairs needed prior to closing on a property. Overall, it appears that both existing and new home sales will continue their upward trend throughout 2020 as more people look for larger spaces or take advantage of low interest rates before they start rising again next year. With continued strong demand and limited supply in many markets across America, now may be an ideal time for those considering buying or selling a house this fall season!