There was some good news for the housing market this week. New home sales increased more than expected in July, up 9.6 percent from June, and at the highest levels since September of 2008. Sales were up to 433,000 versus the 395,000 adjusted figure from June. Analysts, meanwhile, were only expecting sales to increase to 390,000 from the originally reported 384,000 in June. However, new home sales are still down 13.4% from a year ago. Most of the increase appears to be attributed to the Northeast, with a 32.4% increase in July, and the South, with a 16.2% increase.
The Standard & Poor’s Case-Schiller index posted its first quarter over quarter increase in three years, rising 2.9 percent in the second quarter compared to the first. The price index fell 15.4% in June, compared to a revised 17% drop in May, indicating that the rate of decline in home prices appears to be slowing.