US Home Sales Rise in March

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Economists polled by Thomson Reuters predicted that home sales has increased by 5.2 percent in March after thee consecutive months of decline.

Experts attributed this improvement to government incentives to US homebuyers.

Washington: After home sales has declined for three consecutive months, the housing market is expected to have increased by 5.2 percent in March, according to economists who were polled by Thomson Reuters.

In February, the National Association of Realtors said that home sales dipped to 5.02 million, the lowest record since July 2009.

But with the arrival of the spring season, economists believe that the housing industry, which has experienced financial meltdown in 2008, will rise in the highest record for years as Americans are more confident to buy new homes.

Analysts also attributed the increasing home sales in March to government tax incentives to homebuyers including a $8,000 credit for first-time buyers and $6,500 credit incentives for existing homeowners who have stayed in their houses for at least five years.

These government tax incentives were also offered last year but did not push home sales, concerning economists who predicted that the housing sector may experience another double-dip if the trend still continues.

Meanwhile, homebuyers must purchase a property before May 1 to qualify for the incentives.

Real estate agents said that government incentives are pushing home sales as many consumers want to take advantage of the tax credits which make it easy for them to pay the mortgage. Homebuyers are also taking an advantage of the bargain-priced houses which have been foreclosed.

However, some market analysts said the housing industry may experience another double-dip after the government incentives are gone.

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US Home Sales Rise in March

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