Home Resales are on the Rise

The U.S. housing market is on the rebound and sales are outpacing what economist first thought. Resale homes in July showed the largest monthly increase in 10 years by posting a 7.2 percent gain. Many of these sales are thought to be first-time homebuyers trying to take advantage of the $8,000 tax credit that expires November 30. The credit is for first-time homebuyers and allows them to get a credit of up to $8,000, or 10 percent of the purchase price of the home.

This is a busy time of year in the market. Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.

There are risks that may affect this rise of sales though with job cuts still prevalent, mortgage rates and the expiration of the first-time homebuyer credit. If you are planning on buying a home and staying in it for more than a few years, my opinion is that real estate will always be a good investment.