Sales of newly built single-family homes rose 11 percent in June to an annualized rate of 384,000, according to a report released Monday by the U.S. Department of Housing and Urban Development.
Analysts called the report a good sign.
"That is really good news,” said Peter Morici, an economics professor at the University of Maryland. “With all the foreclosure activity sending down home prices, for new homes to jump like that is a good indicator that the economy is bottoming out."
Pat Newport, a housing industry analyst for IHS Global Insight, also applauded the report. "The tax credit is boosting demand, but what will happen when it goes away in December?" he asked.
Excess inventory still exists in some key markets:
- California
- Florida
- Las Vegas
- Arizona
But overall, business is better. "The time for getting deals is going away." Markstein said.
Source: CNNMoney.com, Les Christie (07/27/2009)
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