The department of commerce of the United States announced today that their sales decreased by 7.2% to reach 359,000 units per year. This was below what most forecasts predicted in the beginning which was 400,000 units per day. However, government statistics are always subject various substantial revision. The department of the commerce increased their sales estimate during November by 20,000 units. This will make the sales ‘pace the fastest since2010.
Reports show that the average price of a brand new home will cost around $248,000 when it was $240,000 last November. ‘’ This is an extremely strong number when it comes to the housing sector,’’ Omer Esiner, analyst for the Foreign Exchange, said in a statement yesterday. The sector of housing in the United States is a strength point and is highly expected to offset economic damages that took place due to tax hikes imposed this year.
Most financial markets ended up brushing this data where the stock shares increased and some companies experienced an improvement in their profit such as Procter and Gamble. Most economists believe that home building and mortgages have added to the economic growth during last year. This is the first time this happens since 2005. 367,000 homes were successfully sold during 2012 and this is the highest since 2009.
During December, house sales decreased in three different regions according to statistics by the government. The housing sector has definitely been worrying to the government of the United States. The problem first started during the financial crisis when thousands of low and middle class citizens failed to pay their mortgages and this resulted in the banks taking their houses. The problem became worse when most citizens lost their jobs or weren’t able to find one. This resulted in an increase in the amount of citizens who ended up homeless.
However, this problem is obviously over with the number of houses that have been purchased increasing throughout the last year. Experts are predicting that this number will also increase throughout the next year. This isn’t the only thing that has been in improvement as unemployment rates have also been improving during the past month. It is obvious that the government of President Obama is doing everything they can to improve the economy of the United States. It is clear that 2013 will be a great year when it comes to businesses and the stock market of the United States.