Housing Market Bottom?

According to a recent Commerce Department report, the US economy shifted into a higher gear in the second quarter of this year. Our gross domestic product (GDP) increased at a 3.3% annual rate. (The GDP measures the value of all goods and services produced within the U.S.) Economists had predicted 1.9% growth in the GDP and were surprised by the additional growth of 2.7%. How does that growth relate to real estate? Existing home sales rose 3.1% in July, the highest level in five months. Lawrence Yun, National Association of Realtors (NAR) Chief Economist, expects home prices in some regions to increase even more in the near future. “Sales have picked up significantly in several Florida and California markets.” NAR President Richard Gaylord attributes this to the recently enacted housing stimulus package and predicts a sustained sales uptrend in the months ahead.