The housing market is recovering
Two U.S. housing reports released Wednesday morning show more signs of improvement in the housing market, suggesting that it might finally be on its way toward a full recovery.
The National Association of Realtors reported that existing-home sales rose 7.8 percent to a seasonally adjusted annual rate of 4.82 million in August and the national median home price rose on a year-over-year basis for the sixth month in a row.
The Commerce Department reported that housing starts increased 2.3 percent in August to a seasonally adjusted annual rate of 750,000 and building permits, an indicator of future building activity, fell 1 percent to a seasonally adjusted annual rate of 803,000.
“The housing market is steadily recovering with consistent increases in both home sales and median prices,” Lawrence Yun, NAR chief economist, said in a statement. “The strengthening housing market is occurring even with difficult mortgage qualifying conditions, which is testament to the sizable stored-up housing demand that accumulated in the past five years.”
Existing-home sales, which include single-family homes, townhomes, condominiums and co-ops, were up from 4.47 million in July and 4.41 million in August 2011.