Is the Housing Market Finally Turning Around? [AUDIO]
Sales of new homes spiked 8.3 percent last month, the highest monthly increase in five years.
It's another strong indication the housing market is making a comeback, but why has it taken so long for the turnaround to take place?
"Housing is usually a post-recession economic jack rabbit, but this time it's been far more tortoise than hare. Basically, we went through a huge credit bubble, and housing was really pummeled," says Rutgers economist James Hughes.
"We went through the biggest credit and housing bubbles I think ever in the history of the United States - the bursting of those bubbles sent housing into a tailspin, and during the bubble we over-produced housing, so there was no need to have high levels of housing productions. So we were deep in the hole, and the climb out has been very, very slow."
Hughes stresses the market does appear to be turning around now, because we're seeing increasing consumer confidence, and sustained job growth over the past three years.