Friday, August 21, 2009
Positive, Positive, Positive Real Estate News! The Recovery Continues.
Excellent news - the U.S. real estate market is rebounding faster than expected. For the first time in five years, existing home sales have increased for four consecutive months., the National Association of Realtors announced today. Existing home sales, including single-family homes, townhouses, condos, and co-ops rose 7.2 percent to a total if 5.34 million in July. An NAR survey showed that 30 percent of the homes purchased in July were by first-time home buyers, as buyers have started to come off the fence to take advantage of the $8,000 tax credit.
The National Association of Home Builders/Wells Fargo Housing Market Index reached 18 this month, its highest level since June 2008. The numbers show that confidence among home builders is continuing on a steady rise. This increase can be contributed to buyers taking advantage of the dramatically discounted home prices, with nationwide housing affordability continuing to hover near its highest level in more than 18 year and the $8,000 tax credit posing as an appealing incentive.
In the South, existing home sales rose by 7.1 percent and the median sales price was recorded at $164,500. Florida reached its 11th straight month of sales increases, while the Tampa-St.Petersburg-Clearwater area saw sales of existing homes spike 30 percent.
Economic recovery is being seen throughout the U.S. and abroad as France and Germany recently reported a return to economic growth in the second quarter, marking a stunning turnaround from the beginning of the year. This rebound, as reported by the Associated Press, stoked hope that the recession in the wider 16-country euro area may be ending sooner than originally thought. As international economic rebounds continue, an increase of foreign buyer interest in the U.S. real estate market is being noticed.
It seems that the recovery is expected to continue, as more positive numbers are released each month.