A new report released by the Commerce Department last Friday revealed that new home sales had a huge monthly jump in March. In fact, the jump was the biggest for new home sales that the Commerce Department has seen in 47 years.
Sales Soared 27 Percent
Somewhat spurred by reasonable mortgage rates, the sale of new homes in March soared by 27 percent. The seasonally-adjusted annual rate for March was 411,000 sold from the 324,000 sold in February. This is the biggest increase in home sales in one month since the 31 percent gain seen in March 1963.
In addition to reasonable rates, the increase in sales had a lot to do with the $8,000 and $6,500 home buyer tax credits to those buying new homes or upgrading to bigger homes. With the deadline for signing contracts being April 30, many people wanted to hurry up and get in on the action.
Home Prices Increased Year over Year
Those who are still interested in taking advantage of the home buyer tax credit may have narrowly missed their opportunity, but if you’re still looking to get a home, it’s good to get yours while prices are still decent. According to a new report from the S&P Case Shiller home price index, U.S. home prices in February rose from a year ago for the first time in more than three years.
According to the index, prices in 10 major metropolitan areas were up 1.4 percent in February from the same time in the year prior. However, it’s important to note that month-to-month declines continued for a fifth straight month.
If you are in the market for a home, it’s good to jump in while home prices are still reasonable, especially since homes are expected to appreciate in 2010. Take a look at mortgage rates for your area and see if you qualify for a home loan. Then get on the road to finding the home of your dreams.
