Housing Bounces Back: Here are the Signs
Several factors suggest that housing is looking better, after a year when a slump has had a hold on not only housing but also economic growth in general.
Here are some of the signs that things are starting to look up:
- Sales of new homes soared 16.2 percent in April, the largest monthly gain in 14 years, reaching an annual rate of 981,000.
- Total single-family sales Ã¢â‚¬â€ both new and existing Ã¢â‚¬â€ during the first four months of the year have averaged 5.5 million, about the same pace as in the final four months of last year.
- Through May 25, the four-week average of applications for new mortgages was at its highest level since early 2006, according to data from the Mortgage Bankers Association.
To put the decline into perspective, nationwide home prices are up 29.2 percent over the past three years and 64.3 percent over the past five years. That should be enough to comfort consumers who might be worried about the value of their homes, say Business Week Magazine analysts.
Source: Business Week, James C. Cooper (06/11/07)/National Association of Realtors
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