The sales of existing homes in USA reaches 10-year high in January, as shoppers apparently ignore higher prices and interest, as a sign of growing confidence in the economy. The National Association of Realtors reported on Wednesday that sales of existing homes jumped 3.3% to a seasonally adjusted annual rate of increase of 5.69 million sales in January. This is the highest level since February 2007. The economists had expected growth of 1.1% in the first month of the year.
The rate in December was revised up from 5.49 million to 5.51 million sales.
On an annual basis the increase amounts to 3.8%. The housing demand is explained by stable labor market and better opportunities for young people, which in turn encourages the formation of households.
Obstacle to the prosperity of the real estate market remains the lack of housing, ready for sale, which supports the growth of prices. The fixed interest rates on 30-year mortgages seems to be stabilizing after the last few months were growing rapidly. These rates remain above 4%. Annual wage growth remains below 3%.