U.S. home sales jump to highest since May 2010 - New York News

U.S. home sales jump to highest since May 2010

Posted: Updated:

WASHINGTON (AP) -- U.S. sales of previously occupied homes jumped in August to the highest level in more than two years, adding momentum to the housing recovery.

Sales rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million, the National Association of Realtors said. That's the most since May 2010, when sales were fueled by a federal home-buying tax credit.

The figures were reported the same day the government said U.S. homebuilders broke ground on more new homes in August compared to July.

Still, the recovery is from a depressed level. Sales of previously occupied homes remain below the more than 5.5 million that economists consider consistent with a healthy market.

And the number of first-time homebuyers, who are critical to a housing rebound, slipped to 31 percent from 34 percent.

More Americans appear to be taking advantage of near-record low mortgage rates and prices that are, on average, much lower than they were six years ago.

Sales might be higher if more homes were available, the Realtors' group said. The limited supply is helping to lift prices. There were 2.47 million homes available for sale in August. It would take just over six months to exhaust that supply at the current sales pace. That's the typical pace in a healthy market.

The broader economy may also benefit from recent and more sustainable gains in home prices. When that happens, Americans typically feel wealthier and spend more. Consumer spending drives 70 percent of the economic growth.

Wednesday's positive reports follow other signs that there is a sustained recovery in housing under way. Home prices are rising steadily nationwide. Sales of new homes are also picking up. And home builders are more confident and are breaking ground on more new homes.

The National Association of Home Builders/Wells Fargo builder sentiment index, released Tuesday, rose to the highest level in more than six years in September. Customer traffic and sales are at their highest levels since 2006, the peak of the housing bubble.

Even with the gains in home sales, the market remains weak. Many would-be buyers are having difficulty qualifying for loans or can't afford the larger down payments being required by banks.

The Federal Reserve last week moved to push mortgage rates even lower. Fed Chairman Ben Bernanke said the bank would purchase $40 billion of mortgage-backed securities each month until the job market improves "substantially." That could push down longer-term interest rates and spur more borrowing and spending.

The Fed also hopes that lower mortgage rates will accelerate the housing market recovery and boost home prices. That, in turn, could make people feel wealthier and more willing to spend, which would bolster economic growth.

  • Your MoneyMore>>

  • Cough syrup popular in celebrities' 'sizzurp' cocktails pulled from market

    Cough syrup popular in celebrities' 'sizzurp' cocktails pulled from market

    Thursday, April 24 2014 8:00 AM EDT2014-04-24 12:00:01 GMT
    A prescription cough syrup that some celebrities like to mix with soda and hard candy is being pulled from the market, pharmaceutical company Actavis confirmed. The cough syrup-soda concoction is often called "sizzurp."
    A prescription cough syrup that some celebrities like to mix with soda and hard candy is being pulled from the market, pharmaceutical company Actavis confirmed. The cough syrup-soda concoction is often called "sizzurp."
  • Beware what your 'Digital Shadow' says about you

    Beware what your 'Digital Shadow' says about you

    Wednesday, April 23 2014 11:00 PM EDT2014-04-24 03:00:19 GMT

    To promote a video game called "Watch Dogs," the game's maker has launched a website called Digital Shadow to data-mine your Facebook account. When given permission, digital shadow analyzes all the public information about you and your friends available on the social network to create a file detailing everything from your most-used words to your annual salary to your personality.

    To promote a video game called "Watch Dogs," the game's maker has launched a website called Digital Shadow to data-mine your Facebook account. When given permission, digital shadow analyzes all the public information about you and your friends available on the social network to create a file detailing everything from your most-used words to your annual salary to your personality.


  • Insurer warns of 'cybergeddon' scenario

    Insurer warns of 'cybergeddon' scenario

    Wednesday, April 23 2014 10:32 PM EDT2014-04-24 02:32:34 GMT
    Most people can't go a day without the Internet. Reasons for using it are nearly limitless: social media, shopping, work, communication, finance, everything. Securing passwords and personal information is an ongoing concern.Now a new report says it's not you who needs to step up cyber security. Instead, organizations storing information need to step up their response to cyber risks to avoid a global disaster on the scale of the 2008 financial crisis.
    Most people can't go a day without the Internet. Reasons for using it are nearly limitless: social media, shopping, work, communication, finance, everything. Securing passwords and personal information is an ongoing concern.Now a new report says it's not you who needs to step up cyber security. Instead, organizations storing information need to step up their response to cyber risks to avoid a global disaster on the scale of the 2008 financial crisis.
  • Local NewsLocal NewsMore>>

  • Free dental clinic to draw thousands in Hartford

    Free dental clinic to draw thousands in Hartford

    Thursday, April 24 2014 8:24 AM EDT2014-04-24 12:24:06 GMT
    More than 2,000 patients are expected to seek free dental work at an annual clinic in Connecticut.  The seventh annual Connecticut Mission of Mercy free dental clinic is scheduled for Friday and Saturday.
    More than 2,000 patients are expected to seek free dental work at an annual clinic in Connecticut.  The seventh annual Connecticut Mission of Mercy free dental clinic is scheduled for Friday and Saturday.
  • Fire at Carlstadt Post Office

    Fire at Carlstadt Post Office

    Thursday, April 24 2014 7:50 AM EDT2014-04-24 11:50:47 GMT
    An overnight fire caused significant damage to a Carlstadt, N.J. post office.  It happened around 1:30 a.m. on Thursday at 331 1st Street.
    An overnight fire caused significant damage to a Carlstadt, N.J. post office.  It happened around 1:30 a.m. on Thursday at 331 1st Street.
  • Deli clerk burned in Molotov Cocktail attack

    Deli clerk burned in Molotov Cocktail attack

    Thursday, April 24 2014 7:10 AM EDT2014-04-24 11:10:53 GMT
    A store clerk inside of a Brooklyn mini-mart was set ablaze when an enraged sicko threw a Molotov Cocktail into the store.  It happened just before 2 a.m. on Wednesday at the store on Fort Hamilton Parkway.The 34-year-old store clerk had his hair and coat catch fire in the attack.
    A store clerk inside of a Brooklyn mini-mart was set ablaze when an enraged sicko threw a Molotov Cocktail into the store.  It happened just before 2 a.m. on Wednesday at the store on Fort Hamilton Parkway.The 34-year-old store clerk had his hair and coat catch fire in the attack.
Powered by WorldNow
Didn't find what you were looking for?
All content © Copyright 2000 - 2014 Fox Television Stations, Inc. and Worldnow. All Rights Reserved.
Privacy Policy | Terms of Service | Ad Choices