Existing Homes Sales on the Rise

Is the housing recovery underway?

Sales of existing homes rose for the second month straight.The data shows a 10% gain over last months sales. Economists had foretasted a rise in annual sale of 4.25 million units up from 4.15 million. However the foreclosure halt that took place in all 50 states last month may have a negative impact on next months reports that could skew the data. Overall though many economists say the housing market recovery is underway.

Existing home sales climbed for the second month in a row in September, fueling some hope that a housing recovery is underway.

Economists had forecast sales to edge up to an annual rate of 4.25 million units, according to consensus estimates from Briefing. com.

While some economists say a housing recovery is underway, a foreclosure moratorium in October may have a negative impact on next month’s report.

While Tuesday’s report offered a glimmer of hope for housing, home sales remained 22% below this year’s peak in April, and 19% from a year earlier. “Despite having unbelievably great interest rates and low housing prices, the housing market is stuck in the mud right now,” he said.

The inventory of homes on the market edged down 1.9% in September to 4.04 million units, but that number is still “unbelievably high,” Thomson said.

About 35% of homes sold during the month were in foreclosure, according to Realtors.com.