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.]
