US New Home Sales at 2-Year High in April

[sabra]

Source: CNBC/Reuters

Sales of newly built U.S. single-family homes rose faster than expected in April to their highest level in nearly two years, government data showed on Wednesday, as buyers signed contracts to benefit from a popular government tax credit.

The Commerce Department said sales jumped 14.8 percent to a 504,000 unit annual rate, the highest since May 2008, from an upwardly revised 439,000 units in March. It was the second straight month that new home sales rose.

Analysts polled by Reuters had expected new home sales to increase to a 430,000 unit annual pace from March's previously reported 411,000 units.

Buyers had to sign contracts by April 30 and close on the home by the end of June to qualify for the federal tax credit.

Read more: http://www.cnbc.com/id/37354168

[jpak]

1. good news!

n/t

[pocoloco]

3. Yeah great!

Forecloses going dirt cheap?

[Tansy_Gold]

2. "2-year high"?

Not much to be braggin' about since the past two years of home sales have been below the toilet and down in the septic tank.

TG

[ShortnFiery]

6. I concur. Sort of like, "Hey look! Chocolate rations are up this month!"

IMO, it means little to nothing. :crazy:

[gmoney]

4. May is going to be a 2-year low, it sounds like

everyone who was remotely in the market got in on the tax credit.

I thought for sure it would get extended... home sales are such a big part of everyone's perception of economic health.

[pampango]

5. More good news: Durables Orders in U.S. Increased More Than Forecast

http://www.businessweek.com/news/2010-05-26/durables-orders-in-u-s-increased-more-than-forecast-update2-.html

Orders for durable goods rose in April for the fourth time in five months, pointing to strength in U.S. manufacturing at the start of the second quarter. The 2.9 percent increase in bookings for goods meant to last at least three years was the biggest in three months and followed little change in March, figures from the Commerce Department showed today in Washington.

Rising exports and lean inventories are prompting companies to place more orders with factories, keeping factories at the forefront of the recovery from the worst recession since the 1930s. Corporate and consumer demand that stokes more job growth may help the expansion weather the European debt crisis.

Regional reports have shown manufacturing continuing to expand this month. The Federal Reserve Bank of Philadelphia’s general economic index rose in May to a five-month high, while a New York Fed gauge showed manufacturing in the state expanded for a 10th straight month. Meantime, U.S. companies continue to invest. Ford Motor Co., working to make a quarter of its vehicles run at least partly on electricity, said May 24 it plans to invest $135 million and add 220 jobs at three Michigan facilities to help it introduce five such models by 2012. Rising exports also have been a boon to production. Exports rose in March to the highest level since October 2008, the Commerce Department reported May 12.

The biggest jump in consumer spending in three years and a 13 percent rise in business investment in new equipment helped the economy expand for a third straight quarter in the first three months of this year, Commerce Department data showed last month. Manufacturers make up 12 percent of the economy.

[dmallind]

7. You have to remember onlty BAD news is meaningful on DU

Good news is either

a)manipulated by the banksters to delude the little people (except those smart enough to be DU doomers)
b)insignificant because other things are still not improving
c)a dead cat bounce

the EXACT SAME data if down are of course

a)the truth finally coming out
b)significant because this is the start of the collapse regardless of the improvements in other areas
c)systemic collapse of the fundamentals.

You get used to it.