Those hoping to take advantage of the extremely low interest rates of the last few years will be heartened to know that single-family new home sales increased in May by 7.6 percent. According to the Department of Housing and Urban Development (HUD), these sales are 19.8 percent higher than those same statistics from May of 2011. This increase shows that banks are feeling more secure in lending money to homebuyers. The increase in new home sales should bolster the construction industry and benefit the economy in general.
If banks feel on more sure financial footing it stands to reason that not only will they be inclined to loan money for new home purchases but for foreclosed homes, HUD homes, and short sales as well. Additionally, for those banks that have been dragging their feet, foreclosures may begin moving more rapidly. The results will be more foreclosed properties for sale.
For this reason, the near future may be the best time to make that new home purchase and join the ranks of those who can say, “I own it, this house is mine.” Short sales could soon decrease and these low interest rates cannot last forever. The time to buy is now while the supply and interest rates are at optimum levels for potential buyers.