New home sales reach highest level this year

New home sales rose to highest level this year, but it’s still a challenge to find housing here in West Michigan.

A National Association of Home Builders’ recent report states sales of newly built, single-family homes rose 6.7 percent nationally in May, although sales were flat in the Midwest.

This is the second-highest sales report since the Great Recession a decade ago.

Sale numbers are growing due to rising home equity, job growth and reports of more millennials entering the single-family housing market, according to the association.

Sable Homes, West Michigan’s third largest home builder, has also seen a large increase in it’s sales locally. The builder has sold 12.5 percent more homes compared to this time last year, but even though they build entry level homes, affordable housing is still an issue.

Karin Kay, Sable Homes sales manager, told WZZM 13 existing entry level homes in West Michigan are harder to come by. That’s because people aren’t selling as frequently since they can’t afford next level homes, which are becoming more expensive.

“The issue with the affordable housing from a construction standpoint is governmental regulations,” Kay said. “We are not able to develop land as cheaply as we need to—to be able to keep the cost of land down to get people into entry level homes.”

She said the builder’s new home sales are outpacing the national average.

For the entire WZZM 13 story, click here.

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