U.S. Real Estate market continues to give mixed signals. The data from Commerce Department indicates that new home sales climbed for the fifth straight month in August as sharply lower prices lured buyers into the market. However, the National Association of Realtors reported that the demand for used homes fell unexpectedly in that month from July, the first decline after four months of increases. As always, it all depends on where you want to buy. Some markets (such as Las Vegas) in U.S. are still going down. Some markets (such as Seattle) are stabilizing. Expiration of first time buyers credit in November 2009 may be motivating buyers now. This uptrend may not continue after November if the employment situation doesn’t get any better.

There are continuing positive signals in stock market. We mentioned about pickup in Mergers & Activities few days ago. The return of Mergers on Monday lifted U.S. stocks to their highest levels in five weeks as major acquisition announcements from Abbot Laboratories and Xerox boosted investor hope. We are entering October in few days. I think that U.S. stock market will slow down in October before picking up the momentum in November.

Related Link: U.S. Home Prices Up