![]() "Higher prices of houses and other assets, in turn, have increased household wealth and consumer confidence, spurring consumer spending and contributing to gains in production and employment," Bernanke said in an appearance before the congressional Joint Economic Committee. Federal Reserve Chairman Ben Bernanke cited the revival in housing as a significant benefit of the Fed's super-low interest rate policies. That encourages consumers to spend more, which accounts for 70 percent of economic activity. Higher prices tend to make homeowners feel wealthier. ![]() While construction of new homes and apartments slipped a bit in April, the drop came one month after construction topped 1 million for the first time since June 2008. Applications for permits to build homes rose in April to the highest level in nearly five years. Greater demand, along with a tight supply of available homes for sale, is also boosting prices in most markets and encouraging more construction. ![]() Sales of previously owned homes rose in April to a seasonally adjusted annual rate of 4.97 million, the highest level in 3½ years. Sales in the South were up 3 percent but sales fell 16.7 percent in the Northeast and were down 4.8 percent in the Midwest. The strength in April was led by a 10.8 percent rise in sales in the West. With the April increase, sales are now 29 percent higher than a year ago, but sales are still below the 700,000 level considered healthy by economists. Steady job creation and near-record-low mortgage rates are spurring more Americans to buy homes. The April price was 8.3 percent higher than in March and 13.1 percent higher than a year ago. The median price of a home sold in April was $271,600, the highest level on government records going back to 1993. ![]() That was up 2.3 percent from March and just slightly below January's 458,000.īoth January and April had the fastest sales rates since July 2008. New-home sales rose to a seasonally adjusted annual rate of 454,000 in April, the Commerce Department said Thursday. WASHINGTON - Sales of new homes rose in April to the second highest level since the summer of 2008 while the median price for a new home hit a record high, further signs that housing is recovering. New home sales up 2.3 percent in April record high prices ![]()
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