BREAKING NEWS: New Home Sales Surge In July Despite Coronavirus Outbreak
New Home Sales Surge In July despite the coronavirus outbreak and high unemployment.
- Unemployment claims surpassed the $50 million mark
- Unemployment rates are still over 10%
- However, unemployment rates have been dropping month after month
- The Dow Jones Industrial Average hit an all-time record high in February 2020
- However, the Dow Jones dropped as low as 18,000 as the coronavirus pandemic hit the United States
- The housing market was booming prior to the coronavirus outbreak hit the U.S.
- Many housing experts and economists predicted a second housing market meltdown due to the COVID-19 pandemic in 2020
- However, housing experts and economists were dead wrong
- The Dow Jones Industrial Average skyrocketed back to February’s level which is close to 29,000
- Mortgage rates are at all-time historic lows due to the Central Bank lowering interest rates to zero percent
- The housing market is booming despite the coronavirus pandemic
- The coronavirus pandemic is being politicized by Democrats
- Many Democrats are using the coronavirus outbreak to undermine trump, the economy, stir riots, and to try to use it to get President Trump out of office
- Facts and data do not lie
- The housing market is skyrocketing with no signs of any correction
- New home sales surge in July 2020 despite the high unemployment numbers, coronavirus outbreak, political turmoil, national riots, and other negative social issues in the nation
New Home Sales Surge In July Surprising Many Economists
New home sales surge in July 2020 came as a shock to economists. Many economists predicted a gloomy housing market in 2020 due to the coronavirus pandemic and high unemployment claims. First-time homebuyers fleeing the city to the suburbs also added demand for housing.
Please check out the chart on new single-family home sales:
Home Builders Are Having Record Sales
Homebuilders are having record-breaking sales. Most homes are being sold out prior to getting building permits. Many homebuyers are willing to wait and purchase a newly built home. Buildable land and lots are being scooped up by homebuilders at a premium to keep up with demand.
See the chart below on new single-family home inventory:
The home sales numbers for July surprised many. Home prices are surging as well in most states. High taxed states such as Illinois and New York, we are seeing a surge of taxpayers fleeing those states to other lower-taxed states with affordable living.
Experts expect housing demand to continue into 2021. Mortgage rates being at a historic low is only adding fuel to the fire on housing demand. 30-year fixed-rate mortgages for prime borrowers are now at 2.96%. 15-year fixed-rate mortgages for prime borrowers are at 2.46%. Mortgage rates are expected to remain low for the next 18 to 24 months.