San Diego, CA (PRWEB) September 10, 2009
According to a report from the Census Bureau last week, sales of new single-family homes in the U.S. shot up 9.6% in July from the previous month, increasing for the fourth consecutive month and bringing optimism that the housing market is stabilizing.
The annual rate of new-home sales jumped to 433,000 in July from a June rate of 395,000, spurred by relatively low prices and government tax credits.
Even with month-to-month numbers rising for the past four month, July's number is 13.4% below the July 2008 estimated rate of 500,000 new homes sold.
July's sales total was larger than many analysts had expected. But the new-home market has been so bleak; it would take about 7 1/2 months at the current sales rate to sell the supply of new homes.
The average sales price of a new home was $210,100 in July, off just slightly from the $210,400 in June but down 11.5% from $237,300 a year earlier, the Census Bureau reported.
The drop in home prices is bringing more buyers to the market. And first-time home buyers are looking to qualify for a federal tax credit of up to $8,000.
These sales must be completed by the end of November to take advantage of the credit, however, if Congress does not extend the credit, home sales could be hurt, analysts say.