US Home Sales May Signal Improvement

US new home sales lend may signal the beginning of a turnaround.

26 August 2009

New home sales numbers were up 9.6% per the Census Bureau’s data for July 2009. However, median new home prices were still down by a marginal 0.1%, following the trend set since July 2008, almost a year ago. New home inventories were also down by nearly 12% to 7.5 months, spurred primarily by sales in the Northeast.

Given the gradual improvement in new home sales, an economic recovery supported by improving new home prices may be just around the corner, experts believe. Case-Shiller housing price index also reported improving pricing for the second time in a row.