Home Sales Improve 27% Last Month

Bloomberg is reporting that existing home sales have increased over 25% over the last month. Existing sales increased 27% in March 2010. According to the article it would now appear that the narrative of economic recovery is heating up:

Stocks rose and Treasuries slid as the reports pointed to pickups in housing, business investment and exports that may benefit companies from builders such as Pulte Group Inc. to makers of capital goods including Eaton Corp. The outlook for the rest of the year hinges on job gains that will spur consumer spending, which makes up 70 percent of the economy.

“The pieces are falling into place for a strong recovery,” said Gus Faucher, director of macroeconomics at Moody’s Economy.com in West Chester, Pennsylvania. “We’ve got strong business investment and we’re going to have some investment in residential” real estate.

Maybe the recovery is starting. But remember that we had strong home sales in 2007 and look at what happened the next year.


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