In its largest increase since the housing crash 10 years ago, newly built home sales jumped 55% in June. CNBC says the gain can be attributed to the pandemic, especially with homebuyer preferences focused on new, high-tech homes with space for work and schooling. The numbers come from The John Burns Real Estate Consulting survey, though the official government count will be released at the end of the month. Booming sales have allowed home builders to raise their prices—57% to be exact, according to the survey. The Northeast region reigns supreme with an 86% annual jump in new home sales.
It is also the highest pace of sales growth since the height of the unprecedented housing boom in 2005. That expansion was driven by negligent lending in the subprime mortgage market. This boom appears to be driven by the coronavirus pandemic.
“The anecdotal evidence is overwhelming. Sales in the distant commuter areas are the most robust,” said John Burns, founder and CEO of JBRC. “I believe a lot of computer-oriented people have proven to their co-workers that they can be productive from home, and have sensed, or officially been given the green light, to work from home at least a significant portion of the time after a vaccine has been found.”