New Home Sales Gain Unexpectedly in June
Image by melodramababs via Flickr
New home sales made an unexpectedly large gain in June, according to reports. Data shows that new home sales increased 11% in June. This is providing speculation that the worst of the housing market slide is over. Bloomberg reports on the implications of this jump in new home sales:
Deutsche Bank Securities Inc. and Goldman Sachs Group Inc. economists said today’s figures signal an end to the slide in home construction and sales. While that means the drag on economic growth will turn to a stimulus in the second half of the year, property values are likely to continue falling and rising unemployment will temper the recovery, analysts said.
“We’re barely past the housing bottom, this thing is still fragile,” said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities in New York. “It’s not premature to talk about home prices bottoming — it’s somewhere in the next three to six months. There is light at the end of the tunnel.”
Of course, this doesn’t mean that everything is fine. There are still concerns over home values, and there is the possibility that the employment picture could provide another boost to inventory on the market if continued job loss prompts more foreclosures. However, there is hope that this could mean that the housing market — and perhaps the economy — is on its way back up. It will be interesting to see how things go in the coming months.
For those interested in buying a home in the relatively near future, it is time to be on the alert for rising home prices. While the pricing bottom may not have been reached, there are probably some markets where home prices are starting to make a modest recovery. It is a good idea, before you decide to get a home mortgage loan, to do research on your local real estate market, and figure out whether you should start the buying process now, before recovery sets in and you can no longer find the great deals.
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July 28th, 2009 at 2:20 pm
[…] New Home Sales Gain Unexpectedly in June Image by melodramababs via Flickr New home sales made an unexpectedly large gain in June, according to reports. Data shows that new home sales increased 11% in June. This is providing speculation that the worst of the housing market slide is over. Bloomberg reports on the implications of this jump in new home sales: Deutsche Bank Securities […] […]
August 3rd, 2009 at 2:15 pm
[…] Home Sales: Sales of new homes jumped in June, prompted by low prices and mortgage rates. There are hopes that the housing bottom may be […]