US ex­ist­ing-home sales rise in Oc­to­ber

The Myanmar Times - - International Business -

US sales of ex­ist­ing homes rose in Oc­to­ber at the high­est an­nual pace in nearly a decade, point­ing to an au­tumn re­vival in the hous­ing mar­ket, in­dus­try fig­ures showed.

To­tal ex­ist­ing home sales, in­clud­ing con­dos, con­do­mini­ums and sin­gle-fam­ily houses, grew 2 per­cent month-over-month to 5.6 mil­lion units, ac­cord­ing to the Na­tional Association of Real­tors (NAR).

The re­sult beat an an­a­lyst con­sen­sus fore­cast of 5.4 mil­lion units. The pace of sales for the month was also 5.9pc above the same point in 2015, mak­ing it the fastest growth since Fe­bru­ary 2007.

First-time buy­ers con­tin­ued to ac­count for roughly one-third of sales at 33pc, ac­cord­ing to the NAR data. The me­dian sale price was US$232,200, 6pc above Oc­to­ber 2015, mark­ing the 56th con­sec­u­tive month of year-on-year gains.

Lawrence Yun, NAR chief econ­o­mist, said the wide­spread na­tional gains sug­gested tight sup­ply had kept con­sumer de­mand pent up dur­ing the sum­mer months, when sales dipped sig­nif­i­cantly.

“Buy­ers are hav­ing more suc­cess lately de­spite low in­ven­tory and prices that con­tinue to swiftly rise above in­comes,” Mr Yun said in a state­ment, not­ing that low mort­gage rates had also sup­ported de­mand.

“The good news is that the tight­en­ing labour mar­ket is be­gin­ning to push up wages and the econ­omy has lately shown signs of greater ex­pan­sion and dura­bil­ity.”

To­tal in­ven­tory for the month fell 0.5pc to 2.02 mil­lion homes for sale, down 4.3pc over the same point last year and mark­ing a steady de­cline.

The Com­merce Depart­ment re­ported last week that new home con­struc­tion starts were up sharply for Oc­to­ber at 25.5pc.

Mr Yun said the gain in hous­ing starts was a sign that sup­ply could rise enough to give buy­ers choices while main­tain­ing mod­er­ate price growth. –

Newspapers in English

Newspapers from Myanmar

© PressReader. All rights reserved.