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                           US Housing Market Improves

   by Mil Arcega

   There's good news for the U.S. housing market. Newly released figures
   show a modest uptick in the sales of new and used homes in July.
   Average home prices also are rising.  But a number of obstacles remain
   for the struggling housing market.
   Housing has been a major drag on the economy for the last five years,
   but a new government report suggests a modest recovery may be under
   way. Sales of new homes rose 3.6 percent in July.  And a separate
   report by the National Association of Realtors says demand for
   previously owned homes is up.
   Even luxury builders have benefited. Toll Brothers, best known for its
   so-called larger homes called "McMansions," has posted its best quarter
   in four years.
   "We are blessed with increased demand. The pent-up demand from the
   customers who have been on the sidelines for the last four to five, six
   years -- has started to release," said Martin Connor, the company's
   chief financial officer.
   Smaller inventories have also led to higher home prices - up an average
   of 9 percent from a year ago.
   Connor says that's helped boost builder confidence.  Last month
   applications for building permits hit a four-year high.
   "So while we've had some fits and starts since the downturn, we believe
   based on the strength and depth of this selling season that the market
   is back," Connor said.
   But even with recent gains, analysts say overall home prices are still
   below levels needed to sustain a healthy recovery.  Weak job growth in
   the U.S has not helped.  And despite record low interest rates, tighter
   lending standards continue to constrain buyers.
   Ken Simonson is chief economist for one of the largest construction
   trade groups in the U.S.
   "Certainly credit is still a big issue for developers, for people who
   want to take out a home mortgage.  Those things are retarding the
   ability to order up new construction," Simonson said.
   Despite the difficulties, confidence in a full recovery is growing.
   Economists are forecasting new home construction will add two tenths of
   one percent to overall U.S. growth this year. That would mark the first
   year of positive growth for the U.S. housing market since 2005.
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   [1]http://www.voanews.com/content/us-housing-prices-sales-economy/14947
   77.html

References

   1. http://www.voanews.com/content/us-housing-prices-sales-economy/1494777.html