A jump in sales of previously occupied homes and further gains in home construction suggest the U.S. housing recovery is gaining momentum.
The National Association of Realtors says sales of previously occupied homes rose 7.8 percent in August from July to a seasonally adjusted annual rate of 4.82 million. That's the highest level since May 2010, when sales were aided by a federal home-buying tax credit.
At the same time, the Commerce Department says builders broke ground on 2.3 percent more homes and apartments in August than July. The increase was driven by the best rate of single-family home construction since April 2010.
The pair of reports comes amid other signs of steady progress in the housing market after years of stagnation. New-home sales are up, builder confidence is at its highest level in more than six years and increases in home prices appear to be sustainable.
Still, home sales and housing starts are rising from depressed levels. Sales of previously occupied homes remain below the more than 5.5 million that economists consider consistent with a healthy market. (AP)
