Real estate agents may want to get a head start on scoping out new developments as the volume housing starts experienced a promising uptick. During this increase, the average home sale prices rose to a statistically significant number, according to Redfin's Real-Time Home Price Tracker.
New home starts rose 6.8 percent from April to May to land at a total of 914,000 starts, according to a report from the Department of Commerce. The data revealed a year-over-year increase of 28.6 percent in privately-owned housing starts from May of 2012. This time last year, housing starts were at a low of 711,000. The report also noted that single-family housing starts specifically rose 0.3 percent in May compared to the previous month. Housing completions in May rose to a seasonally adjusted yearly rate of 690,000.
Home sale prices rise amid housing start increase
Redfin's price tracker found that home prices, in addition to sales volume, experienced a drastic year-over -year increase in May. Home sale prices rose by 17 percent from May of 2012, while sales volume had an uptick of 14 percent from last year, and a 16 percent rise from April.
Home sale prices rose 4 percent month-over-month in May, and the increase in home sale prices was led by Sacramento, in which prices were up by 39 percent from May of 2012.
The property data report showed that although housing market inventory was still 22 percent lower than this time last year, it is up 4.3 percent from April. The markets that carried said increase - Phoenix and Chicago - are also among those with the largest monthly gains. Markets that experienced a decrease in inventory were limited to California and Boston.
Nationally, Realtors sealed the deal on more than 79,000 houses in the 19 markets that the report covers, a record high since January 2010. New York led this increase with an impressive year-over-year increase of 74.7 percent. This number does not include condos and townhouses. With such an increase in home starts, which is expected to be seen in more markets in the coming months, real estate agents can expect a large number of new properties to show.