Skip to content
Catholic Online Logo

By Catholic Online (NEWS CONSORTIUM)

10/24/2012 (1 year ago)

Catholic Online (www.catholic.org)

Home sales have shown steady signs of improvement

There appears to be growing signs of a housing market recovery, with new-home sales grew in September the highest level in more than two years. According to a government report released this week, sales sold at an annual rate of 389,000 homes in the month. The last time sales were at this pace, in April of 2010, they were being helped by a short-term home buyer's tax credit.

Adding to the general good news is the fact that foreclosures have fallen to a five-year low, which has reduced the supply of distressed homes available on the market.

Adding to the general good news is the fact that foreclosures have fallen to a five-year low, which has reduced the supply of distressed homes available on the market.

Article Highlights

By Catholic Online (NEWS CONSORTIUM)

Catholic Online (www.catholic.org)

10/24/2012 (1 year ago)

Published in Business & Economics

Keywords: New home sales, construction, economic recovery, housing market


LOS ANGELES, CA (Catholic Online) - The new home market has been showing steady signs of improvement. The pace of home building hit a four-year high in September. The year-over-year sales improvement in September reached 27.1 percent. It's all part of a broader recovery in real estate, helped by a number of factors all coming together.

Mortgage rates are also near record lows. Mortgages are down as the Federal Reserve decided to buy $40 billion in mortgages to spur greater economic growth. These low rates, coupled with years of weak home sales, have resulted in affordable housing prices.

There has also been a drop in unemployment, a positive development for people looking for mortgage loans.

Adding to the general good news is the fact that foreclosures have fallen to a five-year low, which has reduced the supply of distressed homes available on the market.

"All the housing data has taken a turn for the better," Steven Ricchiuto, chief economist for MSUSA says. "Clearly mortgage rates at such a low level and what appears to be an increase in banks' willingness to make loans has boosted activity off the lows."

New-home sales are a flashpoint for gauging the national economy. This is because new homes require people working in construction to build the homes, as well as spur the purchases of appliances, carpeting and other furnishings.

Investment guru Warren Buffett said in a television interview this week that the recent recovery in housing is one of the factors making him more optimistic about the U.S. economy.

The median price of a new home sold during the month was $242,400, down 3.2 percent from the August reading but up 11.7 percent from a year earlier. The slight decline in the month-over-month price reading was partly due to most of the increased sales coming from the South, a region that has lower prices on average.

The tight supply of new homes on the market has ratcheted up prices. The report showed inventories fell to 4.5 months, the tightest supply of homes since August 2005, near the height of the housing bubble.

However, the actual number of homes available for sale was little changed, with the tighter supply coming from the stronger sales pace.

"Home builders had previously been content to cut the pace of starts back dramatically and well below the pace of sales, thereby letting the level of new-home inventory decline," Michael Gapen, economist with Barclays Capital says. "That inventory levels have stabilized . suggests that home builders are becoming more comfortable carrying these inventory levels."

.

---


Pope Francis calls for your 'Prayer and Action'


© 2014 - Distributed by THE NEWS CONSORTIUM

Pope Francis Prayer Intentions for March 2014
Respect for Women:
That all cultures may respect the rights and dignity of women.
Vocations: That many young people may accept the Lordís invitation to consecrate their lives to proclaiming the Gospel.



Comments


More Business & Economics

Is the 'Mark of the Beast' the future of money? Watch

Image of Theoretically, a unique identifier is attached to your digital wallet, could transmits payment for the groceries directly to the store.

By Catholic Online (NEWS CONSORTIUM)

Some futuristic thinkers say that in the next 20 years or so, when people go to the market, they will pick up the items they need and leave - without the benefit of paying a cashier. Sensors will identify a consumer by a mark, their way of walking or facial ... continue reading


Credit card wars: Wal-Mart sues Visa over transaction 'conspiracy' Watch

Image of Wal-Mart objects to the requirement that retailers who want to accept any payments via Visa honor all issuers' Visa-branded cards.

By Catholic Online (NEWS CONSORTIUM)

In an ongoing war over credit cards in the modern retail environment, Wal-Mart Stores Inc. is suing Visa Inc. for allegedly conspiring with banks to fix transaction fees. It's just the latest in a long, ongoing legal fight between retailers and card issuers. ... continue reading


In spite of tax revenue all-time highs - government still running in the deficit Watch

Image of Congress passed and President Obama signed

By Catholic Online (NEWS CONSORTIUM)

According to the Monthly Treasury Statement for February, inflation-adjusted federal tax revenues hit a record $1,104,947,000,000 in the first five months of fiscal 2014. It would stand to reason that the government would have partially dug itself out of its ... continue reading


'Regulated' Bitcoin exchanges planned in New York Watch

Image of Singapore has imposed a tax on Bitcoin trading and using it to pay for services, after classifying it as goods, rather than a currency.

By Catholic Online (NEWS CONSORTIUM)

In a sign that the digital form of exchange in popularity - and by extension, legitimacy, New York's financial regulator has called on firms to submit proposals to set up "regulated" exchanges for currency such as the Bitcoin. LOS ANGELES, CA (Catholic Online) ... continue reading


One, fell swoop: Italy's biggest bank to cut 8,500 jobs Watch

Image of The company is to create an internal

By Catholic Online (NEWS CONSORTIUM)

"I believe the group has turned the page," Italy's largest bank, UniCredit's chief executive, Federico Ghizzoni said. "We could have staggered the losses over several years. We decided to take them all in one year." It wasn't good news for many - Unicredit has ... continue reading


$30 trillion increase from $70 trillion between mid-2007 and mid-2013 sends global debt over $100 trillion Watch

Image of The bank is owned by 60 central banks and hosts the Basel Committee on Banking Supervision, a group of regulators and central bankers that sets global capital standards.

By Catholic Online (NEWS CONSORTIUM)

Everyone at some point seems to 'rob Peter to pay Paul' - especially international governments. During the European debt crisis, many nations borrowed money to keep their governments solvent. As a result, global debt increased by $30 trillion from the original ... continue reading


Wowza! Restaurant starts charging diners for Obamacare Watch

Image of Obamacare sounds nice, but somebody has to pay. At least Gator's Dockside is up front about it.

By Catholic Online (NEWS CONSORTIUM)

Going out to dinner? You'd better be prepared to pay a little bit extra thanks to Obamacare. A chain of Florida restaurants is tacking a surcharge onto diner's bills to help keep expenses at bay and workers on the payroll. LOS ANGELES, CA (Catholic Online) - A small ... continue reading


Time banking - where time is BETTER than MONEY Watch

Image of In a time bank, time is the money.

By Catholic Online (NEWS CONSORTIUM)

Alternative currencies such as Bitcoin and BerkShares are gaining popularity as people look for ways to escape what they see as a rigged and flawed system of monetary exchange in government currencies. However, the idea of banking time as opposed to money is also ... continue reading


Google tops Exxon as world's second-most valuable company - for a day Watch

Image of The one day-surge demonstrated the growing role of technology in the economy.

By Catholic Online (NEWS CONSORTIUM)

It was quite a day on Wall Street. Google, the world's largest online advertiser through its dominant search engine, had a higher market capitalization before falling back at the close in New York to a value of $395.4 billion compared to Exxon's $395.7 billion. ... continue reading


Bill Gates thinks poverty will be eliminated by 2035... But he's missing this one thing! Watch

Image of Bill Gates thinks the world will be more prosperous with absolute poverty for nations eliminated by 2035, mostly as a result of advances in medicine and technology.

By Catholic Online (NEWS CONSORTIUM)

Bill Gates has said that he does not expect to see anymore "poor countries" left in the world by 2035. In his third ,claiming that the world of today was better off than at any time in history and that in 20 years, it will be even more so. LOS ANGELES, CA (Catholic ... continue reading


All Business & Economics News

Newsletters

Newsletter Sign Up icon

Stay up to date with the latest news, information, and special offers

Daily Readings

Reading 1, Genesis 1:1--2:2
1 In the beginning God created heaven and ... Read More

Psalm, Psalms 16:5, 8, 9-10, 11
5 My birthright, my cup is Yahweh; you, you alone, ... Read More

Gospel, Matthew 28:1-10
1 After the Sabbath, and towards dawn on the first ... Read More

Reading 2, Genesis 22:1-18
1 It happened some time later that God put Abraham to ... Read More

Saint of the Day

Saint of the Day for April 19th, 2014 Image

St. Alphege
April 19: Archbishop and "the First Martyr of Canterbury." He was born in ... Read More

Inform, Inspire & Ignite Logo

Find Catholic Online on Facebook and get updates right in your live feed.

Become a fan of Catholic Online on Facebook


Follow Catholic Online on Twitter and get News and Product updates.

Follow us on Twitter