Good news for the housing recovery as sales and prices coupled with low rates fuel increases in new home sales as the following story highlights:
NEW YORK (CNNMoney) -- In another sign of a housing market recovery, new-home sales rose in September to the highest level in more than two years, according to a government report released Wednesday.
Sales sold at an annual rate of 389,000 homes in the month, according to the Census Bureau report, up 5.7% from the 368,000 sales pace in August. The last time sales were at this pace, in April 2010, they were being helped by a short-term home buyer's tax credit.
How to Spot a Recovering Market
If key local sales indicators beat the U.S. averages (as they do in the areas below), your market is probably picking up -- and prices will soon follow.
Percentage With Drop In List Price
Days Listed On Zillow
Sale-to-List Price Ratio
NOTE: Zillow, based on June 2012 data.
This time, the new home market has been showing steady signs of improvement. The pace of home building hit a four-year high in September, according to a separate government report. The year-over-year sales improvement in September reached 27.1%.
The improvement in the market is part of a broader recovery in real estate, helped by a number of factors all coming together.
"All the housing data has taken a turn for the better," said Steven Ricchiuto, chief economist for MSUSA. "Clearly mortgage rates at such a low level and what appears to be an increase in banks' willingness to make loans has boosted activity off the lows."
New-home sales are an important component of the nation's overall economic activity. Not only do they require people working in construction to build the homes, but they also spur the purchases of appliances, carpeting and other furnishings.
Investment guru Warren Buffett said in a television interview Wednesday that the recent recovery in housing is one of the factors making him more optimistic about the U.S. economy.
Author:Michael Bray Phone: 915-549-1770 Dated: November 1st 2012 Views: 2,884 About Michael: ...
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