Sales of New Houses in U.S. Cap Best Two Months Since 2008

[Purveyor]

Source: Bloomberg

By Lorraine Woellert - Mar 26, 2013
Sales (NHSLTOT) of new U.S. houses in February capped the best back-to-back months in more than four years, spurred by near record-low borrowing costs and improving job prospects.

Purchases of newly built homes fell 4.6 percent to a 411,000 annualized pace, following a 431,000 rate in the prior month that was lower than previously estimated, the Commerce Department reported today in Washington. The median estimate of 78 economists surveyed by Bloomberg called for a decrease to 420,000. It was the best two-month showing since August and September 2008.

The increase in demand is contributing to growth as it ripples through the economy, boosting home-improvement retailers, appliance and furniture makers and builders including KB Home (KBH) and Lennar Corp (LEN). At the same time, still-restrictive lending rules and a lack of available land on which to work may keep a lid on how fast the housing rebound unfolds.

“Housing is going to have a strong year this year and it’s going to have a strong year next year,” said Patrick Newport, an economist at IHS Global Insight in Lexington, Massachusetts, who projected sales would drop to a 410,000 pace. “Housing is one of the key factors that’s going to get the economy back on track.”

Read more: http://www.bloomberg.com/news/2013-03-26/february-sales-of-new-u-s-homes-cap-best-two-months-since-2008.html

[Kingofalldems]

1. Obama is a communist

He wants to destroy America.

[Purveyor]

2. Related: Home Prices in 20 U.S. Cities Climb by Most Since June 2006

By Alex Kowalski - Mar 26, 2013
Residential real estate prices increased in January by the most since June 2006, indicating the U.S. housing market strengthened at the start of the year.

The S&P/Case-Shiller index of property values in 20 cities climbed 8.1 percent in January from the same month in 2012 after rising 6.8 percent in the year ended in December, the group said today in New York. The increase exceeded the 7.9 percent median forecast by economists in a Bloomberg survey.

Improving home values will lure more buyers into the real estate market by inducing current owners to put their properties up for sale and prompting builders to begin work on new dwellings. Historically low lending rates and a stronger labor market have helped fueled the rebound in housing, which is a source of strength for the economy.

“The housing market keeps on recovering,” said Christophe Barraud, an economist at Market Securities-Kyte Group in Paris. He correctly projected the January gain and is the third-best forecaster of home prices in the past two years, according to data compiled by Bloomberg. “Interest rates are staying low, which means more first-time homebuyers.”

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http://www.bloomberg.com/news/2013-03-26/home-prices-in-20-u-s-cities-climb-by-most-since-june-2006.html