More Good News for Housing Market
New home sales at fastest pace in 5 years
By Newser Editors and Wire Services
Posted Jun 25, 2013 9:34 AM CDT
In this Monday, May 6, 2013 photo, construction is underway on the infrastructure of a multi-acre housing development in Zelienople, Pa.   (Keith Srakocic)

(Newser) – Sales of new American homes rose in May to the fastest pace in five years, a solid gain that added to signs of a steadily improving housing market. The Commerce Department says sales rose 2.1% last month compared with April to a seasonally adjusted annual rate of 476,000, the highest level since July 2008. The median price of a new home sold in May was $263,900, up 3.3% from a year ago.

Sales of new homes remain below the 700,000 annual pace that's considered healthy by most economists. But the pace has increased 29% from a year ago. Analysts say the housing recovery is looking more sustainable and should continue to boost economic growth this year, offsetting some drag from higher taxes and federal spending cuts.

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Jul 1, 2013 4:57 PM CDT
Banks were bailed out due to loss in typical wind-fall profits of years past, and interest rates went low because poor working-class went out of work, and the bailout money was there for the banks to roll in for a while. Just a long gov't funded paid-vacation. Nobody could get a loan back then. Now that construction is going back up they are raising the interest rates because so many workers are getting back to work, and loan officers are actually having to get out of their air-conditioned cars to check on building progress. Such dirty work ! Home sales are up because of excess inventory dumping at lowered values. Why ? Because even after the bailout, the banks foreclosed on homes anyway, glutting the market with devalued homes taken from people who TRULY needed "bailed-out" ! So now, working class can buy cheaper homes, but not at the low rates that existed when they were unemployed .
Jun 26, 2013 9:18 AM CDT
This is a false sense of the housing market, INVESTORS are buying the houses and renting them out.
Jun 25, 2013 8:53 PM CDT
Laughable. The whole real estate market is being propped up by banks trying to keep house prices high lol look in towns with low median incomes & you see huge numbers of foreclosures & house prices going for next to nothing. Why? Banks can't prop the prices up in those areas waiting for someone with a good income to buy them for higher prices b/c the higher incomes aren't there. But in areas where incomes are high they hold the foreclosures for a long time waiting for someone to pay what they loaned on the houses when the market was at its peak. The whole market is being gamed by those too-big-2-fail banksters on u guys lol