Sales of new homes are expected to have increased in November for the third month in a row, a sign that the housing market is finally on solid ground.
The Commerce Department’s report on November’s new home sales is forecast to show a 2.3% increase to a seasonally adjusted annual rate of 440,000, from 430,000 in October, according to economists polled by Thomson Reuters.
The report will be released Wednesday at 10 a.m. ET. It counts signed contracts to buy homes, rather than completed sales, so it will capture consumer reaction to Congress’ decision last month to extend and expand a homebuyer tax credit.
First-time buyers will still be able to save up to $8,000, and now homeowners who have lived in their current properties for at least five years can claim a tax credit of up to $6,500 if they relocate. To qualify, buyers must ink a deal by the end of April.
Still, some analysts don’t think the new deadline will have an immediate impact on sales, because many buyers won’t act until the 11th hour approaches.
Home resales, meanwhile, are at the highest level in nearly three years. The National Association of Realtors said Monday that sales rose 7% from October to a seasonally adjusted annual rate of 6.54 million in November.
http://www.usatoday.com/money/economy/housing/2009-12-23-new-home-sales-grow-steadily_N.htm
Tags: consumer, economy, home sales
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