Bankruptcy

Good News on Home Sales

By J. Michael McBride

As the economy continues to falter overall, there are some bright spots. As reported earlier, Ford earnings increased and the company saw its first profit in some time. Now comes a report on gains for home sales. The question of course is whether this is part of a general and continuing trend upward or whether this is part of the "bear market rally" which some economists feel is only a prelude to another major drop in all markets. "New-home sales soared in June from the previous month, the third increase in a row and supplying fresh evidence the housing market is beginning to recover from its long crisis. Sales of single-family homes increased by 11.0% to a seasonally adjusted annual rate of 384,000 compared to the prior month, the Commerce Department said Monday. Though, year-over-year, new-home sales were 21.3% lower than the level in June 2008. The median price for a new home was $206,200 in June, down 12.0% from $234,300 in June 2008. On a monthly basis, the price fell from May 2009’s $219,000."

Here is a link to the Wall Street article from which the quote was taken: http://online.wsj.com/article/SB124870175008183715.html

Michael

Full post as published by Texas Lawyer Blog on July 27, 2009 (boomark / email).