Last month resales jumped 3.1% to the highest level in half a year. Additionally, new home sales jumped 2.1% according to the Commerce Department. This came as a mild surprise to Wall Street.
Resales were up all around with the West leading the country with a solid 9.7% increase. Following that was the Northeast with a 6% gain, the Midwest with a 1% gain and the south with a minor drop of 0.5%.
New home sales showed a similar pattern with the Northeast gaining a 39% increase, the West with a 10% increase and the Midwest with an 8.2% jump. The south had a drop in new home sales with a 2.5% drop.
Can this be another sign of a market turnaround? Although this is very good news, we must keep some facts in perspective. A large number of these sales come from first time home buyers and real estate investors sitting on the fence waiting for a clear signal that prices may have bottomed.