According to new data released, July saw an increase in the number of durable goods being sold as well as home sales. This signals a strengthening of the economy after what had been described as a second quarter slow down.
There was an increase in new and existing house sales, seeing the combined figures for sales of both rise to 4.86 million. This was up on the 4.72 million recorded in June, while orders for long-lasting goods also saw a jump by the largest amount for the whole year.
Low mortgage rates and properties which are still being listed as 'cheap' means that there has been an increase in the demand for property, which is fuelling the construction industry as it tries to catch up with the housing shortage. According to data released by the National Association of Realtors, there was a 3.3% rise in the number of purchases of existing houses. New home sales were up from 350,000 in June to 365,000 in July. The number of newly constructed properties, which accounted for 6.7% of the market in 2011 (a drop of 15%), has also started to rise again.
One economist from RBS Securities Inc, which is based in Stamford, Connecticut, said: "Things seem to be looking a bit better compared to the weak second quarter. All the data points to a sustained improvement in housing."
The chief executive of a leading construction firm said: "The housing market continues to gain momentum. We are no longer battling the headwinds of the housing recession."
