Hooray for summer! Sales are up for new & used homes

July 2009
Several recent articles are reporting good news for the Real Estate community. But with mortgage rates creeping back up and the end of the $8,000 tax credit quickly approaching, Realtors and builders must be prepared to position themselves for what may lie ahead. Now is the time to get marketing and get creative.

USA Today reports that June's home sales rose for the third month in a row. "The numbers are encouraging and show some stability," says Bernard Baumohl at the Economic Outlook Group. "Given that the economic crisis all began with the collapse in the housing market, it's encouraging to see this sector starting to improve."

The inventory of homes for sale has also dropped, meaning there is less of a surplus on the market. Compared with a year ago, the number of homes on the market is down 15%.

First-time buyers in June accounted for 29% of transactions, according to a survey by the NAR. Patrick Newport, an economist at IHS Global Insight, says that it's too soon to say the market for homes is turning around. "Sales will sag until the labor market turns around. This will not happen until next year," Newport said in a statement.

MSNBC also reports that new U.S. home sales jumped in June by the largest amount in more than eight years. While home prices are still falling, the recent figures show a sign the housing market is finally bouncing back.

Data has shown that home resales rose 3.6 percent in June, while new home sales rose 11 percent. June's results were the strongest sales pace since November 2008. The last time sales rose so dramatically was in December 2000.

 

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