New Home Sales Are Up
New Home Sales Are Up
The Commerce Department reports that new-home sales grew
in July at the fastest pace in 10 months. Volume
climbed 9.6 percent — the most since February 2005 — to an
annual rate of 433,000, topping economists’ estimates of
390,000.
Also, the median price of a new home slipped 0.1 percent from
June to $210,000; and the inventory of available properties
contracted 3.2 percent to a 16-year low of 271,000. The data
suggests that increasing affordability and government stimulus
efforts, most notably a first-time home buyer tax credit, may be
helping the economy to claw its way out of recession.
NOTE: There are several bills in Congress to
extend the first-time home buyer tax credit. It’s not guaranteed
that any of them will pass, but some commentators feel that an
extension is likely!
[SOURCES: Investors Business Daily; Information, Inc.]
