US home sales climb in April

As far as resale homes go, April was a very good month for the US.  Bob Willis of Bloomberg News reported, “Purchases climbed 7.6 percent to a 5.77 million annual rate as buyers rushed to qualify for an expiring government tax credit…” 

Willis also said that prices surged more than they had in four years, but along with that, inventory contiued to climb.  With the end of the tax credit and increased inventories, there was concern that home values would again decrease in the near future, although continued low interest rates make this unlikely in the short term.

In a related article, Willis also reported that new home sales numbers were also very good.  Quoting, “Sales climbed 15 percent to an annual pace of 504,000…”  At the same time, the median sale price dropped 9.5 percent from April ’09.  Again, although sales were strong for new home, everyone is waiting to see what life is going to be like once the tax credit has ended.

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