Diane Swonk, Chief Economist
Dec. 22, 2009 – 9:35 a.m. CT
Home Sales Rebound on Tax Credits and Low Rates
Existing home sales rebounded in November to 6.54 million units, its strongest rate in three years. Home prices continued to fall, as first-time buyers re-entered the market and snapped up bargains. Everything from record low rates to record high affordability and the first-time buyer tax credit aided sales.
The jump in sales, coupled with revisions downward to earlier data, reinforces the view that growth is accelerating as we move toward the end of the year. Much of the pickup in activity we are seeing, however, remains tied either directly or indirectly to government stimulus. We still have a way to go before we can count on carrying this recovery without the support of the government, but the trend is in the right direction.
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