Commerce Department Reports Biggest 1-Month Home Sales Surge In More than 20 Years

Share this news:

Home prices in the United States are also rising and are currently only 6.4% below their 2007 levels, which were reached before the housing bubble burst.

Sales of new houses surged 18%, according to Commerce Department figures released yesterday in Washington. The one-month increase is the biggest single-month gain since 1992, and it exceeded the highest forecasts of a recent Bloomberg survey of economists.

The median forecast of those economists was that volume would hit 430,000 on an annualized basis. Some of those experts believed the number of sales would be as low as 405,000. None of the nearly 75 economists who were polled, however, expected anything higher than 455,000, after the July numbers came in at 412,000. But in yesterday’s report the Commerce Department confirmed that there were, in fact, 504,000 – almost 100,000 more than the low-end of predictions by some of the nation’s most respected economic forecasters.

As Meghan Robinson, CEO of Sunovis Financial, explains, “That annualized rate of sales is the strongest it has been seen early 2008, right before the housing crash and mortgage meltdown that triggered the Great Recession. So it helps to bolster the argument that the housing recovery has come full-circle. But we believe this market is more stable and sustainable, with less volatility and risk.”

Despite the availability of bargain-priced homes over the past few years, which broke affordability records on the closely-followed Case/Schiller home affordability index, consumers didn’t buy because they did not have enough income or savings. They were also prevented from buying due to tighter lending on behalf of banks. Labor Department data this month shows, however, that the economy has added an average of 215,000 jobs per month this year until now, which represents an 11% increase over last year’s averages.

“I do, however, encourage buyers to make their purchases while interest rates are still exceptionally attractive and mortgages are more affordable,” adds Robinson. “The cost of the loan is, after all, one of the key components of home affordability – no matter what is happening with housing prices.”

But buyers will want to make their purchases before prices get too high. The upward trend is already underway, because the Federal Housing Finance Agency reported that home prices are 4.4% higher than they were last year. That puts them just 6.4% below their 2007 peak.

About Sunovis Financial



Sunovis Financial is a leading online lender specializing in helping small businesses that have healthy cash flows. Typical customers include health and dental practices, retail stores, restaurant and franchisees, online companies, and more. Sunovis Financial currently serves over 700 industry types and offers a broad range of small business loans and other alternative financing products, such as equipment leasing and accounts receivable factoring.

Their Premier small business product is offered at affordable, business-friendly rates and require no personal guarantee, no collateral, and have no prepayment penalty. Sunovis Financial extends their short-term, renewable business loans of up to $250,000 to qualified applicants within a few business days and has recently added an extended working capital loan to $2,000,000. The company's speed and transparency make it a trusted alternative to banks.

Contact Info:
Name: David Cohen
Email: Send Email
Organization: Sunovis Financial
Address: Overland Park
Phone: 855 243-7191
Website: http://www.sunovisfinancial.com

Release ID: 64789

CONTACT ISSUER
Name: David Cohen
Email: Send Email
Organization: Sunovis Financial
Address: Overland Park
SUBSCRIBE FOR MORE