Zonda’s New Home Pending Sales Index (PSI) posted more positive news in September. The indicator, which measures the number of new-home sales contracts signed across the country, grew to 170.7 last month, showing 2.7% month-over-month and 46.9% year-over-year increases and continuing the momentum of the ‘super V’–shaped housing recovery.
Economists have continually noted that the work-from-anywhere shift combined with seriously low mortgage rates and an improving economy all bode well for the housing market.
“The U.S. economy flipped from a service-based economy to a goods-based economy and, right now, the most desired ‘good’ is a new home,” says Ali Wolf, chief economist at Zonda. “New-home sales are unstoppable even as builders raise prices and election uncertainty heats up.”
The top three new-home markets in the September report were Denver, Jacksonville, Florida, and Raleigh, North Carolina. According to the report, all three markets are benefiting from positive net in-migration and are among the top markets for millennials. Plus, builders in Denver are also outselling the national average across all categories, including entry-level, move-up, and luxury.
“After spending more time at home for the majority of 2020, many home shoppers realized that more space or an extra bedroom would be nice,” adds Wolf. “And today’s low mortgage rates can help them get there.”
