New home sales improve while prices fall
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New opportunity created for buyers?
After a slow May, CNN is reporting that new home sales are finally rebounding. Overall, sales are up 23.6 percent to a seasonally-adjusted 330,000, a notable increase from 267,000 in May. This jump comes after analysts expected no more than a 3.7 percent increase, according to the slow trend.
"This is welcome news, although month-to-month housing data are volatile," said Commerce Department Under Secretary for Economic Affairs Rebecca Blank. "But one key ingredient for a healthy housing market is job growth, and the President remains tightly focused on ensuring that the labor market continues to recover."
According to CNN, sales plummeted after home buyers rushed to sign before the nationwide tax credit expired on April 30. Although the market is showing signs of improvement, house hunters are advised to take advantage while it’s still slow.
As the inventory increases, house prices are expected to fall. CNN reports that the average price of homes sold in June was $213,400, down 1.3 percent from the month before.
All of these factors, as well as the current low mortgage rates, could combine to form a prime opportunity for buyers to snag their dream homes.
Loans News: This article was published on 7-27-2010 at 11:39 am.
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