US existing home sales rose to a more than 14-yr highs in September, boosted by historically low mortgage rates.
The National Association of Realtors (NAR) reported Thursday that existing home sales jumped 9.4% to a seasonally adjusted annual rate of 6.54-M units last month, the highest mark since May 2006.
Economists polled had forecast sales increasing 5% to a rate of 6.30-M units in September.
Existing home sales, which account for the majority of home sales, jumped 20.9% on a Y-Y basis in September.
Sales increased in all 4 US regions and were concentrated in the upper price end of the market.
“This is one statistic that Joe Biden can not misquote. Yes, a key component in America can not be denied that America’s Number #1 industry (real estate) is proof that the United States is on its way to recovery.
“What most people do not know is that Real Estate, renting, and leasing constitutes the largest sector of the United States’ economy with the GDP value added of $1.898 trillion accounting for 13% of the national Gross Domestic Product (GDP). This sector contributes to the economy in two fronts; the first being through consumer spending through rent and payment of household utilities, and the other being through residential investment which encompasses the construction of new housing units, broker fees, and residential remodeling. Also known as the housing sector, the industry plays an integral role in the US economy and the industry’s impact was best displayed during the 2008 recession where a nationwide decline in home prices triggered America’s worst economic recession in the 21st Century.
“The housing sector also plays a critical role in employment with over 1.9 million people working in the real estate, renting and leasing industry.
Without question, a positive real estate market is a necessary element that fuels the Consumer Confidence Index, which The U.S. Bureau of Labor Statistics (BLS) reports on a monthly basis and has calculated it as far back as 1913,” says economist and real estate expert Bruce WD Barren.
Have a healthy day, Keep the Faith!