| Credit & Debt | Personal Finance | Economic Crisis | Housing Market | Employment Trends | Expert Insight |
Subscribe  Print 
|
||
Homebuyers snap up new housesIn July, sales of newly constructed homes increased by 9.6 percent month-to-month, with 433,000 units sold, according to data from the U.S. Census Bureau and the Department of Housing and Urban Development. Although this is a significant rise on June's sales figures, it is still 13.8 percent below the level seen in July 2008, when an estimated 500,000 new houses were sold, the report states. The new findings come just one day after the S&P/Case-Shiller home price index showed the first quarter-over-quarter rise seen in three years. According to the index, home prices increased by 2.9 percent in the three months ending with June 30. And, although price growth is down from its 2008 rates, it still beats predictions from analysts, CNN Money reports. Cities that saw the largest jumps in prices included Cleveland (9.8 percent), Dallas (6.5 percent) and San Francisco (5.9 percent). Meanwhile, Las Vegas, Miami and New York City continued to see prices decline during the three-month period. In some areas, first-time buyers with good credit scores may be rushing to purchase a home because they believe the market has already bottomed out and they don't want to miss a deal. However, speaking to CNN Money, Robert Shiller of the Case-Shiller Index warned that high levels of unemployment are likely to keep prices and sales from increasing too quickly. "The really important things [affecting home prices] are unemployment and momentum," he told the news provider. "We have momentum, which is very important, but we also have high unemployment."
|
||
