Substantially coming back from record lows in May, new home sales surged in June. The inventory of houses available on the market came to a 42-year low.
June numbers were contraindicated by downward revisions to April & May sales estimates, stiffening viewpoints of second quarter growth & corroborating apprehensions of a weak housing market.
The increase in new house sales in June was the highest seen since May 1980, & rivaled that year's 36.7% drop created by the popular tax credit that bolstered sales.
June's impressive surge in sales resulted in the supply of new propertys available drop from 9.6 months' worth in May to 7.6 months' worth. The number of new propertys on the market fell 1.4% to 210,000 homes, reaching their lowest levels since the third quarter of 1968.
Even after June's positive growth, analysts cautioned that an importunate high jobless rate threatens to stall a return to a healthy real estate market.
New home sales are only a small amount of the US real estate market, though analysts polled last month predict nearly a 7 percent increase in new property sales - forecasting 320,000 property sales in June, up from May figures of 300,000 homes.
At the exact same time new properties sales recovered, sales of existing houses have hit three month lows. The report came after an announcement by FedEx that the logistics & package delivery giant had upgraded their quarterly & yearly earnings predictions, together sparking a rally on Wall Street. FedEx also said that air and ground package deliveries were up, indicating positive overall economic growth.
Manufacturing, considered a principal engine of growth, has continued its decline into July, and the poor housing market is expected to hamper growth through much of the remainder of the year, but not trigger another decline.
Though the media typically make it seem as if there's a nationwide market, the truth is that buyers do not shop amongst all the different markets when looking for a house. Similarly, the job market, the local economy and several other factors should vary quite significantly from one local market to the next. As a result, assessing the health of a local market cannot be decided by looking at national sales alone. Furthermore, because local economies vary widely, the likelihood of locals wanting to buy a house will additionally vary quite significantly.
June numbers were contraindicated by downward revisions to April & May sales estimates, stiffening viewpoints of second quarter growth & corroborating apprehensions of a weak housing market.
The increase in new house sales in June was the highest seen since May 1980, & rivaled that year's 36.7% drop created by the popular tax credit that bolstered sales.
June's impressive surge in sales resulted in the supply of new propertys available drop from 9.6 months' worth in May to 7.6 months' worth. The number of new propertys on the market fell 1.4% to 210,000 homes, reaching their lowest levels since the third quarter of 1968.
Even after June's positive growth, analysts cautioned that an importunate high jobless rate threatens to stall a return to a healthy real estate market.
New home sales are only a small amount of the US real estate market, though analysts polled last month predict nearly a 7 percent increase in new property sales - forecasting 320,000 property sales in June, up from May figures of 300,000 homes.
At the exact same time new properties sales recovered, sales of existing houses have hit three month lows. The report came after an announcement by FedEx that the logistics & package delivery giant had upgraded their quarterly & yearly earnings predictions, together sparking a rally on Wall Street. FedEx also said that air and ground package deliveries were up, indicating positive overall economic growth.
Manufacturing, considered a principal engine of growth, has continued its decline into July, and the poor housing market is expected to hamper growth through much of the remainder of the year, but not trigger another decline.
Though the media typically make it seem as if there's a nationwide market, the truth is that buyers do not shop amongst all the different markets when looking for a house. Similarly, the job market, the local economy and several other factors should vary quite significantly from one local market to the next. As a result, assessing the health of a local market cannot be decided by looking at national sales alone. Furthermore, because local economies vary widely, the likelihood of locals wanting to buy a house will additionally vary quite significantly.
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