US Homes Sales Plunge by 10.5% in November, Raises Questions About Housing Market

In some negative news or the US economy, it was reported today that home sales plunged during the month of November as buyers faced rising prices and new regulations that many believe could have delayed some closings. The report led to many analysts questioning whether the housing market in the US economy is showing first signs of exhaustion. According to a report released by the National Association of Realtors, it was stated that sales of existing homes collapsed 10.5 percent to a seasonally adjusted rate of 4.76 million. It is imperative to state that the reading was the weakest in close to 19 months. It is important to point towards the fact that the housing sector has witnessed solid gains all through 2015. Sales of existing homes are on track to rise by roughly 5 percent during the current year which is being seen as a huge positive.

In other economic reports, it was reported today that the US economy grew at a slightly slower pace over the summer as compared to what the government had estimated earlier. According to a report released by the US Commerce Department, it was reported that the economy as measured in terms of GDP expanded at an annual rate of 2 percent during the July-September quarter. The reading was a bit lower than its previous estimate of 2.1 percent. It is important to state that most economists on the street expect a slight acceleration in the current quarter and stronger growth in the first half of 2016.

Many analysts on the street are of the view that the US economy could continue to expand in the coming year on the back of higher consumer spending and steady wage growth on the back of the strong US labour market which is being seen as a huge positive.

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