Another good news of the housing market's recovery came in yesterday, as Bloomberg reported sales of new homes hovered close to its two-year high. According to the article, the rise in sales of new US homes was fueled both by record-low borrowing costs, as well as the decrease in the supply of foreclosed homes.
Broken down by region, the Northeast experienced the highest growth throughout the whole country, with sales increasing by 20% compared to the prior year. This increase in property sales also reflected the increase in builder's confidence mostly in the Eastern part of the country, as proven by the number of developments found in the region.
Bloomberg asked Stuart Miller, CEO of housing megahouse Lennar Corp. what his thoughts are regarding the signs pointing to the industry's recovery, he said
Simply put, the housing market is recovering, not only are our sales margins and backlogs improving, but the beginnings of a sense of visibility are coming back to underwriting land acquisition and planning for the future.
In addition, Toll Brothers Inc., the largest luxury-home builder in the country, experienced better-than-estimated profit and increase in revenue for its third quarter for properties in the East Coast.
View the full article here, courtesy of Bloomerg.com