Single-family home sales have soared to their highest level in two years.
According to adjusted estimates from the U.S. Census Bureau, national sales in may were up 369,000 homes, up over 7.5% in April and nearly 20% from the same time last year.
Jay Butler of Butler Real Estate said so far this year in Muskingum County, the number of homes sold are up from January 1st to July 1st of last year, however on average, these homes are selling for less.
"In that same time frame of January 1st – July 1st, of 2012, what we’re seeing is actually more houses but the average sales price has come down about $6,000 to about $94,000 per unit," Butler explained.
Butler said the numbers can be attributed to the large number of foreclosures both locally and nationally, but he’s noticed another interesting trend among buyers.
"Investors who would normally have their money in a certificate of deposits or money markets or things of that nature, they might be getting 1% return on investment are taking their cash out and are actually buying single-family residentials and they’re getting a 7% or 8% return on their investment," Butler said.
Butler said the surge in new homes is due to buyers wanting to build homes that meets their personal specifications.