The Intelligencer Journal New Era article “Home sales building here” indicates a small upbeat as compared to the lows established this time last year. However, this should not be interpreted necessarily as a sign of economic recovery.
Sales have been stimulated through a massive government subsidy program for first time home buyers. Also, foreclosed houses have worked their way through the legal labyrinth and now are being offered at bargain prices.
But perhaps more significantly, the apartment rental market has softened as homes sales are increasing. This suggests that some renters who feel secure in their employment are seizing the opportunity to acquire bargains at favorable interest rates. Others who are unemployed, underemployed or fearful of layoffs are moving in with parents or friends because they no longer can afford the rent.
NewsLanc’s through the experience of its sister companies and studies of economic data has not yet observed any national trend towards overall improvement of the economy. We wish we did.
