Sales of Existing Homes Rise

Print Friendly

Sales of previously owned U.S. homes unexpectedly climbed in October, showing record-low mortgage rates are helping spur the world’s largest economy. Contracts to buy previously owned homes rose in November in the United States to their highest level in two and a half years, an industry group said on Friday, further evidence of a strengthening housing market recovery.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed last month, increased 1.7 percent to 106.4 points — the highest level since April 2010, when the homebuyer tax credit expired.

A housing turnaround is also taking place in other parts of the world. Home sellers in London increased asking prices in November for a third month as the city’s wealthiest areas continued to lure overseas buyers. Prices in the U.K. capital increased 1.2 percent to an average 483,709 pounds ($769,600), the operator of Britain’s biggest property website said.

The housing market has turned the corner after a dramatic collapse, which dragged the economy through its worst recession since the Great Depression of the 1930s. Home sales and prices are rising, encouraging builders to undertake new construction projects.

Related posts: