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Monday, April 26, 2010

New home sales indicate rise in March

The U.S. Commerce Department had announced Friday that the Sales of new homes rose 27 percent in March compared to February. It was the largest monthly increase since April 1963, when sales jumped 31.2 percent. Besides the National Association of REALTORS® reported last week that sales of previously owned homes rose 6.8 percent.

The buyers are taking advantage of the $8,000 tax credit scheduled to expire at the end of this month, say the economists. Michael D. Larson, a real estate and interest rate analyst at Weiss Research, wrote in a research note that in simple terms, housing is a bargain again, and buyers are responding. "That is unambiguously good news for the market going forward", he added.

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