US housing gives a reason to cheer

By Incorrect Author 26 November 2009

Housing starts are a really important US economic indicator. Especially as sub-prime mortgages were basically responsible for the global economic meltdown. So now that sales of newly built homes rose to the highest level in more than a year, it may be time to start cheering, as the supply of these homes has also dropped to new lows. When demand outstrips supply in such a vital economic area, it simply means consumers are spending and banks are lending. Apart from keeping a beady eye on inflation, that’s what just about every government in the world wants. Purchases of single-family homes in the US rose 6.2% in October from September to a seasonally adjusted annual rate of 430,000, the US commerce department says. Some regions, including the Washington DC area, posted a 23% gain. In all, sales were up 5.1% from a year earlier. It’s worth keeping an eye on these figures as the US crawls out of recession. An earlier report showed a surprising 10.1% surge in sales of existing homes in October. Low prices and historically low interest rates helped boost the sales, as did an $8,000 tax credit for first-time buyers – which was recently renewed. Any upside in this market is a positive thing. Read more: Washington Post, BusinessWeek, Washington Post, BBC, BusinessWeek, Washington Post


While we have your attention...

An increasingly rare commodity, quality independent journalism costs money - though not nearly as much as its absence.

Every article, every day, is our contribution to Defending Truth in South Africa. If you would like to join us on this mission, you could do much worse than support Daily Maverick's quest by becoming a Maverick Insider.

Click here to become a Maverick Insider and get a closer look at the Truth.

Election 2019

Maimane takes hardline on illegal immigration at DA’s 2019 campaign manifesto launch

By Ferial Haffajee

Adolf Hitler was the first European leader to ban human zoos.