Pace of home resales rose in August - the fastest in over 3 years. Groundbreaking for new homes climbed also a hopeful sign that there is gaining traction ina housing market recovery. Residential construction accounts for only about 2.5 percent of GDP but economists estimate for every new house built there are at least three new jobs created. NAR, The National Association of Realtors, found existing home sales increased almost 8% last month; the fastest annual rate since May 2010. The Federal Reserve moved last week to bolster the economy, announcing it would buy $40 billion in mortgage-backed securities per month until the outlook for employment improved significantly.
Everything is above analyst expectations of a 4.55 million-unit rate. The broader U.S. economy appears to be losing steam but the housing market has become a relative bright spot. Nationwide, the median price for a home resale rose to $187,400 in August, up 9.5 percent from a year earlier as fewer people sold their homes under distressed conditions. Continue reading ‘Home Sales up 8% and Fewer Distressed Sales this Month’