Rays of Light in the Job Market

There are signs of improvement in the U.S. job market. In July, employers cut the fewest number of jobs since August 2008, according to the Labor Department. In addition, the unemployment rate fell, representing the first drop in 15 months. These results were better than expected and provide additional evidence that job cuts may be winding down.

In addition, this is great news for real estate, as it is expected that more buyers and sellers will get off the fence as they begin feeling more secure at their jobs.

Existing Home Sales Rise in Second Quarter

In the second quarter of the year, sales of existing homes rose 3.8 percent compared to the first quarter, according to the latest survey by the National Association of Realtors. Thirty-nine states experienced sales increases from the first quarter, and nine states were higher than a year ago; the District of Columbia showed both quarterly and annual rises.

Lawrence Yun, NAR chief economist, said the sales gain appears to be sustainable. "With low interest rates, lower home prices and a first-time buyer tax credit, we've been seeing healthy increases in home sales, which are a hopeful sign for the economy," he said.

Yun cited "sustained sales gains" in Maryland and the District of Columbia, as well as "strong double-digit gains" in New York and New Jersey, among other states, as examples of areas that are showing improvements.