Home sales in June went up a staggering eleven percent, which is the highest rise in home sales in nearly a decade. What caused this dramatic turn of event? Economists believe it is a combination of bargain prices and low interest rates. This is also a very good sign that recovery is on the way. However, even the most fervent optimists don’t believe this news constitutes the end of the housing crisis. It does have immediate ramifications though. The sharp rise will certainly boost consumer confidence and will increase the chances of homes being sold in certain areas that have seen sharp rises.
While this news is certainly good, what does it mean for local markets who didn’t have this level of success or even saw losses in the month of June? Upon finding this report, many were left thinking, how did the housing market do so well nationally, when locally it’s not so good? The answer to that question is complicated because markets rise and fall seasonally in certain places. For instance, Florida markets did not do well, nor do the usually do well in the summer months when the heat is unbearable and people are vacationing elsewhere. The good news is that broad recovery of the real estate market is a strong sign that things are getting better. This news is certainly not the “silver bullet” that is going to save the real estate market but it is good news.
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