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| Version 0 | Version 1 |
|---|---|
| US house sales jump as prices dip | US house sales jump as prices dip |
| (about 20 hours later) | |
| US existing home sales rose at their fastest rate since March 2004 last month, despite fears of a slowdown in the property market. | US existing home sales rose at their fastest rate since March 2004 last month, despite fears of a slowdown in the property market. |
| Sales of existing homes rose 3.9% in February driven by a surge in activity in the North East, the National Association of Realtors (NAR) said. | Sales of existing homes rose 3.9% in February driven by a surge in activity in the North East, the National Association of Realtors (NAR) said. |
| However, the median price of a property dropped 1.3% to $212,800 (£108,571) compared with the same time last year. | |
| Experts said falling prices were luring buyers back into the market. | Experts said falling prices were luring buyers back into the market. |
| The housing market has slowed as recent US rate increases have weighed on the market, discouraging speculators and prospective buyers alike, while rising inflation threatened to keep interest rates high. | The housing market has slowed as recent US rate increases have weighed on the market, discouraging speculators and prospective buyers alike, while rising inflation threatened to keep interest rates high. |
| Lending fears | Lending fears |
| However, the report also voiced concerns over the future of the sub-prime lending market - which offers mortgages to customers with poor credit histories. | However, the report also voiced concerns over the future of the sub-prime lending market - which offers mortgages to customers with poor credit histories. |
| The rising number of people defaulting on such mortgages has forced the sub-prime sector to tighten up on its lending methods, the NAR added. | The rising number of people defaulting on such mortgages has forced the sub-prime sector to tighten up on its lending methods, the NAR added. |
| "Our view is that the tightening in the sub-prime market will have a negative impact on home sales," NAR chief economist David Lereah said. | "Our view is that the tightening in the sub-prime market will have a negative impact on home sales," NAR chief economist David Lereah said. |
| "It probably won't postpone the recovery (in housing) but it will slow it." | "It probably won't postpone the recovery (in housing) but it will slow it." |
| Mr Lereah added that he expected such problems to trigger a cut in demand for homes - with sales expected to fall by as much as 200,000 this year. | Mr Lereah added that he expected such problems to trigger a cut in demand for homes - with sales expected to fall by as much as 200,000 this year. |
| Experts are concerned that that should the housing market experience a significant slowdown and property values fall, this could lead consumers to rein in spending - putting a break on the main driver of growth in the world's largest economy. | Experts are concerned that that should the housing market experience a significant slowdown and property values fall, this could lead consumers to rein in spending - putting a break on the main driver of growth in the world's largest economy. |