If nothing else, the new data on housing is forcing the sceptics to try harder to punch holes in the numbers. Here’s the latest, this time on new home sales:
Bloomberg: Purchases of new homes in the U.S. jumped more than forecast in July, adding to signs that the economy is rebounding from the worst recession since the 1930s.
Sales increased 9.6 per cent, the most since February 2005, to a 433,000 annual pace, figures from the Commerce Department showed today in Washington. The number of houses on the market dropped to the lowest level in 16 years.
One factor is the new homebuyer tax credit, which is capped at $8,000, meaning it has the most impact on the lower-end, “everything-must-go” new homes. It’s why the homebuilders are pushing so hard for it to be extended, and why they’re racing to do as much business as they are now. Like cash-for-clunkers, we’re at least clearing out a lot of inventory, even if it means a big draw-forward from future demand.
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