Housing bubble? February home sales show signs of recovery
Plenty of Real Estate experts have gone on record that a new housing bubble is forming, but others view increased February home sales numbers for the U.S. as a positive sign that the market is surging again. According to the National Association of Realtors, home sales in February 2010 rose 8.2 percent. Analysts had expected sales to continue to flat line, as credit for too many today is limited to the payday loan. This was in spite of the tax credit for home buyers. The tax credit was among the driving forces for sales increases in fall 2009, but the New York Times says that it has been a lesser force this spring.
Do February home sales equal a second surge?
National Association of Realtors Chief Economist Lawrence Yun says it is possible. A second Real Estate market surge would go a long way toward stabilizing home prices, placing that market very much on the same track as U.S. employment, where the service sector has been shown to be experiencing resurgence, even if it still has some distance to go before it reaches the break even point. The Institute for Supply Management also indicates that non-manufacturing jobs and exports are on the rise. Yet this does not take into account the perpetually “underemployed,” who have difficulty making ends meet and rely upon occasional payday loans.
February home sales: Good news for dark times
Let’s be clear about this: the increase in February home sales is all relative, for the U.S. Real Estate market is still in a deep rut. Foreclosures are still on the rise. Yet the February home sales report is a glimmer of hope. Areas of the country that experienced bad weather even showed an uptick; according to the Times, the Northeast and South – areas hard-hit by snow this winter – showed a nine percent increase in sales.