New home sales go in the positive column as good economic news this Thanksgiving. In October, sales of single family homes increased by 6.2%. Home values are still falling, though by a smaller percentage. The median price of a new home in the U.S. was $212,200 in October, down by 0.5%. The inventory of new homes for sale also fell to 6.7 months from a 7.4 month inventory in September.
Don't celebrate just yet! New home sales actually fell in most regions in the U.S. but were up substantially in the South. However, expectations were that new home sales certainly would not jump by this amount due to the fact that the $8,000 new home buyer tax credit was due to expire in November. But, since it was expanded and extended to April 2010, it apparently impacted October home sales.
There are some other positive signs. The latest numbers for consumer confidence are up slightly. Consumer spending is up. First-time unemployment claims are under 500,000 for the first time since January 2009.
The stock market is climbing even though there was a major revision in third quarter economic data. Corporate earnings are holding up which is a positive sign for the stock market.
As I blog about the economy, I keep saying the same thing. Economic news is mixed and we will enter 2010 with a fragile, slow recovery in progress, with the hope that nothing happens to derail it.
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