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12/22/2009
While the recovery of real estate industry has gotten off to a slow start in the third quarter of 2009, we are looking into brighter times as a surge in home sales in November. Sales of existing homes rose to the highest level in nearly three years.
According to the National Association of Realtors, sales rose 7.4 percent to a seasonally adjusted annual rate of 6.54 million. In October, the rate was 6.09 million.
According to economists surveyed by Thomson Reuters, sales had been expected to rise to a pace of 6.25 million.
Pete Flint, chief executive of real estate Web site Trulia.com said, "Things are stabilizing. There is a significant amount of buyer interest out there."
Speaking after a meeting at the White House with executives of community banks, President Obama said that if businesses get the credit they need, they have a great opportunity to start growing and hiring.
"We feel very optimistic that the worst is behind us," the president said.
Many analysts believe the economy is on track for better results in the current quarter.
"We expect a better performance in the fourth quarter, but the core problems for the economy — bust banks and a massively overleveraged consumer — have not gone away," said Ian Shepherdson, chief economist at High Frequency Economics.
Much of the third quarter's growth was supported by government stimulus. The $8,000 first-time home buyers tax credit sustained real estate sales and fortunately the tax credit has recently been extended and expanded beyond first-time buyers
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