http://www.nytimes.com/2015/04/23/business/economy/home-sales-jump-to-highest-level-in-18-months.html
Sales of existing homes surged in March to their highest level in 18 months as more houses came on the market, a sign of strength in housing ahead of the spring selling season. Existing-home sales increased 6.1 percent to an annual rate of 5.19 million units in March, the highest level since September 2013. The percentage rise was the largest since December 2010.
"In March, the inventory of unsold homes on the market increased 5.3 percent from a month ago to two million units, the highest level since last November. However, supply was up only 2 percent from a year ago...Realtors and economists say insufficient equity and uncertainty about the economy’s strength were forcing potential sellers to stay longer in their homes. A recent survey by the Realtors association showed homeowners were staying in their homes for an average of 10 years instead of the typical seven years... At March’s sales pace, it would take 4.6 months to clear houses from the market, down from 4.7 months in February. A supply of six months is viewed as a healthy balance."
6 comments:
Home sales fluctuations are directly related to consumer confidence fluctuations. Homes are a household’s most expensive purchase and largest asset. This is another sign that the economy is improving since an increasing amount of people have the confidence to purchase homes. The confidence is most likely a result of decreasing unemployment and more people receiving consistent pay checks.
Yes, I agree with Kevin.
However, up till now, even though the interest rates have been so low, the consumer confidence has not risen.
I wonder if an increase in expected interest rates also had any impact.
This is definitely good news for the economy. It reflects a higher consumer confidence, especially because a purchase like a home is a big investment.
I also think that less people defaulting on homeowners loans are demonstrating a positive future for our economy. Confidence and a little new gained stability will go a long way.
I do agree that a strong housing market is connected to high consumer confidence which is overall good for the economy. With the warmer months coming there is likely to be a rise in the number of homes being built. GDP is likely to rise as well and we might see a very stimulating Q2.
I agree this is great news for the economy and Consumer confidence levels. The housing markets was one of the causes for all the problems in 08 and it is nice to see that this sector is recovering
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