New Home Sales Are On the Rise

As the economy struggles to right itself, mortgage rates have steadily increased after record lows just a few years earlier. Though many people were still reluctant to make a home purchase at the first sign of the increase, the trend seems to be reversing as an increase in August new home sales indicates.

housing market
Source: Shutter Stock

Up by almost eight percent, the housing market is finally picking back up again in three out of four regions – the Midwest, and the Southern and Northeastern areas of the nation – despite increased interest rates. This is believed to be because people are coming to terms with increasing interest rates on home mortgages.

Apparently, potential home buyers have realized that, as interest rates continue to climb without a break in sight, buying a home now is more important than ever, and waiting too long to take the plunge could result in thousands of dollars worth of additional interest throughout the life of the loan.

Another factor contributing to the increase in new home sales, as opposed to the purchase of older homes, is the modern push towards energy efficiency. As the price for crude oil rises, the pull toward energy-efficient, or green, homes becomes a necessity. Fortunately, many designers understand the appeal of sustainable housing and design new homes accordingly.

Despite rising mortgage rates and increased new home sales tags, more and more people are continuing to buy. And because rates will continue to climb, there has never been a better time to make the move to home ownership.

If you are considering the purchase of a new home, or if you just want to increase the value of your existing property, Gelotte Hommas Architecture can help. To learn more about what Gelotte Hommas can do for you, contact us today!

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