Existing Home Sales Jump While New Construction Falters
Sales of existing homes in the U.S. took a 10% jump in October, fueled by foreclosures, tax credits and low prices, while new home construction starts dropped by 10.6%.
Purchases of new homes, which make up 90% of the realty market, rose to an annual rate of 6.1 million, up from 5.54 million in September, according to Bloomberg. An estimated 30% of those homes were in foreclosure or distressed sales.
Meanwhile, new housing construction fell by 10.6%, the first decline in construction starts since April, according to the Washington Post. The drop represented a 30.7% declined from October, 2008.
President Obama recently announced an extension of the $8,000 home buyer credit. The initiative, set to end Nov. 30, will now be available through April 30, 2010, and will be offered to all home buyers, not just first-time homeowners.
