Real Estate Information Archive

Purchases of new homes rose 11% in June 2009, the biggest gain in eight years, underscoring evidence that the deepest housing slump since the Great Depression is starting to stabilize.

Sales rose to a 384,000 annual pace, higher than every forecast and the most since November 2008, figures from the Commerce Department showed today in Washington. The number of houses on the market dropped to the lowest level in more than a decade. Check to see Charlotte houses on the market and sort out the great values.

While this news means the drag on economic growth will turn to a stimulus in the second half of the year, property values are likely to continue falling nationally and rising unemployment will temper the general economic recovery. However, economists are now speculating that this new data means the pricing bottom is not far off, somewhere in the next three to six months. There is light at the end of the tunnel.

The Commerce Department earlier this month reported that builders began work on 582,000 residential properties at an annual rate in June, the most since November. Home construction has subtracted from U.S. gross domestic product every quarter since the start of 2006.

The jump in sales signals the U.S. economy is on the way to recovery. Across the board this is good news. It’s what you would expect to see at the beginning of a recovery.”

Sales of new homes likely rose in June to the highest level in four months, adding to evidence the housing slump that began in 2005 is stabilizing, economists said ahead of a government report today.

Sales increased 2.9% to a 352,000 level, according to the median forecast of 60 economists. Purchases reached a record-low 329,000 level in January 2009.

Falling prices and near record-low mortgage rates have started to lure buyers even as the unemployment rate rises. The worst recession in five decades may end in coming months as the housing and manufacturing downturns ease. Use Charlotte home values to connect with a knowledgeable listing agent and find out what your property should list for.

Home demand is stabilizing which is not surprising given the improvement in Charlotte home affordability. Home sales are likely to pick up from here. Estimates are for a further sequential increase in sales to the 350,000 to 377,000 range.

New-home sales have risen in two of the four months since the January low. Other reports underscore the stabilization in housing. The Wells Fargo/National Association of Homebuilders sentiment index has risen in five of the past six months and existing home sales have increased for three months in a row.