US Home Sales Bounced Back But The Recovery Remains Weak
US existing home sales rebounded to increase by 7.6% mom to an annual rate of 4.13 million units in August, after falling by a whopping 27.0% in July, which was the sharpest since the data began in 1968. This was the first increase in four months but it remains to be seen whether the rebound is temporary. Nevertheless, it was an encouraging sign especially following the end of the government’s tax incentive in April. The tax incentive offered certain buyers as much as US$8,000 in tax credit to sign a contract by 30 April and complete the contract by 30 June. US lawmakers, however, have since pushed the completion of the deadline to 30 September. Yoy, the existing home sales contracted by a smaller magnitude of 19.0% in August, compared with -25.3% in July. Despite the improvement, it was the second straight month of decline after showing positive growth for a year, pointing to a renewed weakness in home sales as the government’s support ended.
Tracking The World Economy... - 24/09/2010
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