U.S. housing recovery in full swing

May 24, 2012 11:00AM

The national housing market is seeing the brightest spring since the crash, Reuters reported. The housing sector saw rising sales and prices in April, with a nearly 10 percent increase in sales year-over-year, according to data from the U.S. Department of Commerce. Data from the Federal Housing Finance Agency showed March home prices up 2.7 percent from the previous March, the largest jump in prices since November 2006.

“The recent buoyancy in housing market activity has raised hopes that this beleaguered sector may finally be on the verge of a rebound,” Millan Mulraine, a strategist with TD Securities, told Reuters.

The median price of a new construction home rose to $235,700 last month, up 4.9 percent year-over-year.

But there is still a need for caution, analysts say. “Even though we have seen home prices start to turn, our concern is that in the second half of the year as more foreclosures come into the market, we could see a dip in prices,” said Jeremy Lawson, a senior economist at BNP Paribas. [Reuters]