Americans are buying and building homes again. According to the U.S. Department of Commerce, sales of new homes rose 4.4 percent in November, the fastest rate since April 2010, after a federal tax credit was issued.
New home sales increased 15.3 percent over the past year, but are still 700,000 below a level that economists consider healthy.
Job gains and mortgage rates are responsible for the home sales, along with the fact that people who lived with family during the recession are looking to move out.
Standard & Poor’s home price index increased 4.3 percent in October year-to-year, the largest increase in 2.5 years. A survey by the National Association of Home Builders showed that builder confidence is at its highest level in 6.5 years.
According to the National Association of Home Builders, each new home creates an average of three jobs and $90,000 in tax revenue.