New home sales data for June is in, and it shows an unexpected gain for home sales. This is good news for those looking for signs of a housing bottom. MarketWatch reports on the latest numbers for housing:
Richard Moody, chief economist and director of research at Forward Capital, cautioned that home sales are still at “exceptionally low levels.
“While sales of both new and existing homes appear to have moved off of their cyclical bottoms, we see limited upside over coming quarters, particularly as the labor market continues to deteriorate, albeit at a slower rate,” he wrote in an email.
As you can see, though, even if a bottom has been reached, new home sales are likely to be limited by other economic factors. However, this also means that if the housing market is on the road to recovery some markets may not have the same type of deals that we have been seeing late.
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