The sales of the previously owned homes in the United States have risen by a huge gap, thus taking the prices to three years high. All the action had taken place in the month of February. The economists are of the view that this rise is going to bolster the economic growth. The purchases have been increased by amount of 1.6 % which has taken the annualized rate to 5 million. This rate happens to be the most since the month of November, 2009. In lines to these rises in the home purchases and sales, the business outlook for the property dealers looks good.
The growing demands for the homes in addition to the limited availability is constantly pushing the property values to the higher limits. These trends are leading to the gains in the household confidence and the resulting wealth. All these factors are also going to propel the consumer spending. An easier access to the credit and some larger gains in the employment will help in giving the housing markets businesses a new boom. At the same time, it is also going to ensure that these businesses continue to contribute towards the overall economy of the region. A senior US economist, Carl Riccadonna has said in this regard that the housing business can be finally seen in its recovery mode which is indeed a positive sign for all. He also added that the shares of the housing businesses in the economy might be small, but the roots are indeed very deep.
The fed reserve officials and policy makers have said in this regard that they will keep on going with the purchases of $ 85 billion in the form of bonds on a monthly basis, all of which are going to spur the economy. The central bank has said in this regard they are continuing to estimate the downside risks for the economic and business outlooks. They also said that the housing sector seems to be regaining its lost value, but this growth needs to be constant in order to bolster the economy to higher levels and that the fiscal policy at the same time is getting more and more restrictive. The market had gone to its peak in the year 2005 at the amount of 7.08 million. The re-sales had accounted for about 93 % of the residential markets in the United States in the year 2012.