Although the inventory of new homes on the market remained at near record lows last month, home prices rose to their highest level in five years. The current inventory would take 4.5 months to clear, mirroring July’s data. The median price of a home rose by over 11% to $256,000, a point not seen since March 2007. Year over year prices showed an increase of 17%. Together all this signals a slight turnaround in the housing market as a whole, although we’re still not out of the woods. It comes on the heels of an announcement by the Federal Reserve to buy $40 million in mortgage-backed securities per month until the employment outlook improves.
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