Housing Sales Eclipse Precrisis Level

Existing home sales haven't just recovered this year, TD Bank says that they are better now than they were before going into recession. After declining by nearly a third in the second half of last year, the seasonally adjusted level of sales has skyrocketed, climbing 61 percent since August. Most of the incredible gain in the housing market can be explained by the increasing demand for homes since the recession.

I think this was bound to happen since the recession started. As Newton once said: "Every action has an equal and opposite reaction," and this can be applied here. When the housing market plunged, it was due to banks foreclosing on adjustable rate mortgages early to help pay off debts. When millions of people lost their homes, demand dropped, and stayed there for a very long time. As the recession ended, demand has increased yet again. It was inevitable that demand would increase once again. Article courtesy of the Globe and Mail: http://www.theglobeandmail.com/report-on-business/housing-sales-eclipse-precrisis-level/article1315179/