According to Reuters, the Commerce Department said that sales declined 7.3% and their statistics were seasonally adjusted. Although the housing market has shown a decline in December, it has had a positive impact on the economy the past year. Even though there was a decline in sales, the median new home price increased from $245,600 in November to $248,900 in December. The rising prices can be an indicator that the economy is improving. Many economist believe that this is the first year since 2005 that the housing market has added positive growth to the economy.
http://www.nytimes.com/2013/01/26/business/economy/single-family-home-sales-decline.html?ref=todayspaper&_r=0
1 comment:
I'm not entirely convinced that simply a raise in home price for single-family homes can indicate an improving economy. Yes, I agree that its a great thing to see that there is a positive growth in the housing market. However, so many variables go into housing market that its hard to indicate exactly how significant this statistic is. According to this Commerce Department, sales have declined 7.3%. I am curious to see the statistics for renting and college graduates living at home with their parents. As comical as that may sound, I believe that more and more college graduates are relying on going back to their parents' house for a length of time before they are financially stable to go out and get their own place. That said, even when they leave their parents' home, they are most likely to be renting, leasing, etc. not buying a single-family home. In addition, the current generation has been starting to wait longer before starting families. It is not uncommon now for people to wait until their late 20s or early 30s to start a family and really have a necessity to purchase a single-family home.
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