Home resales in the States reached an 8-year high in July which was last experienced in 2007. It's a sign the housing market is poised to heat up and could give a boost to US economy. In a report made by the National Association of Realtors that was posted in cnbc.com, statistics show that the number of homes sold increased by 2 percent which translates to 5.59 million units sold. In the previous month of June, the initial reported sale of 5.49 million units was adjusted to 5.48 million which is more accurate.
However, in the same post, Reuters polled economists about their forecast on home resales and most of them predicted a drop to 5.44 million which did not materialize after sales went up by 10.3 percent as compared to last year.
In another post in pressherald.com, several factors were touted as the reason for the significant jump in home resales. With more jobs available and lower rates in mortgage, more people who already own houses tend to be enamored by the idea of owning another while first-time homeowners remain elusive. It took more than six years of slow but steady growth before the housing market finally bounced back from the Great Recession. With many of the current generation of homeowners nearing retirement, they have found huge payoffs in investing in the real estate market either to upgrade their homes or downsize them.
However, this increase also viewed by experts as the primary reason why there is not a lot of first-time buyer movement. "When first-time homebuyers compete with people who are more qualified borrowers that have additional cash, they tend to lose," said Budge Huskey, chief executive of the real estate brokerage Coldwell Banker. The increase in sales recorded in July happened in the South and West while home sales practically remain the same in the Midwest as reported in the same article in pressherald.com.
