The Census Bureau reported Thursday that sales of new homes
rose to an annual rate of 377,000 (15,400 modular homes) in the month, up 4.4%
from October, and up 15% from year-earlier levels. It was the highest rate of
new-home sales since April 2010, when sales were inflated by a temporary $8,000
tax credit for home buyers.
There are two downsides to this good news however. First,
most economists say we need at least 600,000 new home sales to have any impact
on the economy and secondly, if our elected officials can’t agree in time to
keep us from falling over the Fiscal Cliff, new home sales will go right over
that cliff also.
The housing market is now showing numerous signs of
improvement, including better existing home sales and home construction.
A combination of near record low mortgage rates, lower
unemployment and a drop in foreclosures means there are more buyers
interested in purchasing, and fewer available homes. That in turn has lifted
home prices.
No comments:
Post a Comment