Have we finally put the debacle of the 2005/2006 mortgage crises, and the toxic inventory it left in it’s wake behind us? It could be that the last 10 years of digging ourselves out of the mortgage crises of 2005/2006 is finally behind us. Home sales hit a mark that harken back to a time when the housing market was “normal”, and was based on supply and demand. Below are some facts from a recent Wall Street Journal publication.
Sales of new homes surged in April, a sign that builders are stepping up as demand for housing remains robust.
Sales soared 16.6% to a seasonally adjusted annual rate of 619,000, the Commerce Department said Tuesday. That was the biggest monthly jump in 24 years and trounced estimates of a 525,000 pace.
The combined rate of existing- and new-home sales broke the 6 million level in April for the first time in nine years. That’s nowhere near the 8.5 million pace sales hit at the height of mortgage mania in 2005. But they ran at an average of about 6.1 million from 1999-2001, a period many housing analysts consider a more normal market.