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New Homes Sales Rise

In a report released this week by the U.S. Department of Housing & Urban Development sales of newly built single family homes rose 11% in the month of June.  Peter Morici, economics professor at University of Maryland said,  "That is really good news.  With all the foreclosure activity sending down home prices, for new homes to jump like that is a good indicator that the economy is bottoming out."    Excess inventory still exists in some key markets such as California, Arizona, Las Vegas & Florida. Economic recovery is still a few months away, say economists surveyed by USA Today, but two-thirds of them think existing-home sales have bottomed out.    Bill Cheney, chief economist at MFC Global Investment states that both the housing and automotive markets "have the potential to generate some quite large percentage increases."   Overall, economists say unemployment won't peak until the first half of next year and credit markets will remain tight. ~Sorce: USA Today & Realtor Magazine