Unexpectedly, the number of home sales in the United States rose 5.1% in February . This increase was drastically higher then what economists predicted. They actually were expecting a decrease in sales rather then an increase. Many people believe that increase in housing sales is the first step in leading out of the recession. However, not all news was good news as many of the sales, 40 to 45 percent, were “distressed sales”, meaning that the homes were sold at prices much lower then their previous cost. “The average price of for a home sold was $165,000, down 15.5% from last year. In the United States, housing sales have continued to be stronger in the West, with home sales up 2.6% this month and 30.4% over the last year. In the Northeast, the housing market is still struggling with sales down 14.9% from a year ago.
Due to the current economic situation in the United States, any slight improvements in the housing market are a great sign for the economy. With an increase in buying and selling of houses the market will begin to slowly recover and experience increased activity. The good news coming from the housing market caused the Dow Jones to jump more than 400 points.
http://www.foxbusiness.com/story/markets/economy/existing-home-sales--february/
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