Desire to exit cities fuels strongest June home sales since the housing boom or 2005.
The sudden recession earlier this year caused a sharp decline in the real estate market. But increasing consumer confidence, along with an emerging demand for modern houses with the amenities for working off sight and home schooling outside of congested cities made for a rousing recovery in June.
According to a monthly survey by John Burns Real Estate Consulting (JRBC), purchases of newly built homes jumped 55% in June over last year. That was the largest annual gain since homebuilding began again following the massive housing crash just over a decade ago. It’s also the highest pace for sales since the height of the unprecedented housing boom in 2005, which of course, was spurred on by negligent lending in the subprime mortgage market.
“Sales in the distant commuter areas are the most robust,” said John Burns, founder and CEO of JBRC. “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.”