Sales of new properties weren't expected to do as well as the recent numbers have indicated. June property data showed that more people were buying over the previous month, and the warm summer weather might only add to the increasing statistics.
As builders gain confidence in the housing market, more recently-built homes are being sold. The Department of Commerce reported that new home purchases rose to a seasonally adjusted annual rate of 497,000 for June.
Other economists didn't expect the gains to so high, according to Bloomberg, which stated it surveyed 77 others who reached a median estimate of 484,000 for the previous month. Instead, the actual data exceeds that, a positive sign for both builders and buyers as new homes go up for sale.
"It's a builder's market," Stuart Hoffman, chief economist at PNC Financial Services Group, told the news source. "The housing market is poised for further gains and is a key component of the U.S. recovery overall."
Bloomberg stated that other expected figures ranged from 415,000 to 518,000, so the Department of Commerce's information is close, albeit slightly higher than many had forecasted.
New residential sales in June were more than 8 percent improved from May, and approximately 38 percent greater than the same time in 2012, while the median sales price for the month was $249,700, Bloomberg stated. The total inventory is holding near a four-month supply at the moment, with a seasonally adjusted estimate of 161,000 new homes for sale.
Summer is a good time to buy
Several factors contribute to a strong home buying season, typically considered the time between March and September. June sits right near the middle of peak buying, and one possible reason is the nice weather, according to Fox Business.
"Most buyers don't want to move in the middle of a snowstorm, and most sellers realize their house will show better when buyers can see the beautiful flowers, the landscaped lawn," Matt Phipps, a Realtor at Phipps Real Estate, told the news source. "A new roof will show really well from a curb-appeal standpoint in spring or summer compared with having snow covering it."
In addition, many peoples' housing situation is fluctuating at this time. Data showed that a large number of apartment leases end, due to many students leaving school as summer starts, Fox Business stated. Real estate records could help potential buyers or real estate agents make educated housing decisions.
More people tend to look for new homes during this time, so many builders and sellers use that to their advantages. There are more options, but also a buyer increase.