Home Sales, Real Estate | featured news

Builders' mood gloomy; small gains come after worst summer for home sales in a decade

The number of people who signed contracts to buy homes rose in August for the second straight month but remained far below last year's pace.

Sales of U.S. homes rose 7.6% in August -- recovering from their steep descent in July, when the end of a popular government stimulus program drove sales to their lowest levels in more than a decade.

Buying activity in the residential real estate market slowed dramatically in July, according to a report released Tuesday by the National Association of Realtors. The dramatic plunge is yet another sign the U.S. economy may be heading toward a slowdown or double-dip recession.

Sales of previously occupied homes dipped 2.2 percent in May, suggesting government home-buying incentives are winding down earlier than anticipated.

The stock market rebounded Wednesday after a stronger-than-expected increase in pending home sales restored investors' optimism about the economy.

Home sales surpassed expectations for April as government incentives provided a temporary boost to the housing market.

Sales of previously owned U.S. homes in July notched their fastest pace in nearly two years, an industry survey showed on Friday, the strongest sign yet that housing was pulling out of a three-year slump.

A realtors' index for pending sales of previously owned homes increased a third month in a row, rising 6.7% in April from March and up 3.2% from a year earlier.