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BUSINESS Friday 2 OctOber 2020
U.S. housing roars back despite recession, high unemployment

By ALEX VEIGA gan in late 2007, sales have
AP Business Writer been quicker to bounce
LOS ANGELES (AP) — The back in the current reces-
U.S. housing market has sion because of the short-
staged a furious come- age of properties on the
back this summer, even as market.
the economy struggles to "It's the opposite this time
regain its footing after be- around: we have too many
ing knocked into a reces- buyers and not enough
sion due to the coronavirus. housing," said Jay McCan-
After stalling in the first few less, a housing analyst at
weeks of the pandem- Wedbush Securities. "Lack
ic, U.S. home sales have of supply probably gives
surged in recent months to this demand wave a lon-
the highest level in more ger runway than it would
than a decade. otherwise." A strong job
The strength in housing market tends to be a pre-
has been driven by ultra- dictor for housing market
low mortgage rates, fierce strength. The surge in home
competition for a chroni- sales this summer, even
cally low inventory of prop- though the economy has
erties on the market and only recovered about half
a wave of millennials and of the 22 million jobs lost
others increasingly vying to A "sold" sign is posted on a home in Westfield, Ind., Friday, Sept. 25, 2020. to during the pandemic,
become homeowners. Associated Press points to an uneven eco-
At the same time, the un- didn't lose their job, they're to the Commerce Depart- demand for homes. As of nomic hardship. "Housing is
even economic fallout forging ahead buying their ment. New home sales are August, 1.49 million homes a bit of a window right now
from the pandemic, which first home." Sales of previ- now up about 43% from this were on the market, a drop into the fact that this reces-
has hurt many low income ously occupied U.S. homes point last year. of 18.6% from a year earlier. sion has really hit lower-in-
Americans while leaving have risen three months in Mortgage rates have been The dearth of homes for come people much, much
many white collar workers a row after slowing sharply a key driver for the mar- sale at a time when more harder than higher-income
relatively unscathed, has in March, April and May. ket. They've fallen this year millennials are entering people," Tucker said. "The
helped keep the down- They climbed to a season- to record lows, increasing their 30s, marrying and other part of the story here
trodden economy and job ally adjusted annual rate of buyers' purchasing power. looking to buy a home, has is that the market for who is
market from being a drag 6 million homes in August, The average rate on a 30- helped push up prices. The able to get into homeown-
on the housing market's the fastest pace since De- year home loan was 2.90% median price for a previ- ership has become a more
comeback. cember 2006, according to last week, according to ously occupied single-fam- exclusive club in the last
"Housing is one of the stron- the National Association of data from mortgage buyer ily home reached $315,000 several years."
gest sectors of the econo- Realtors. Demand for newly Freddie Mac. A year ago, in August, up 11.7% from Economists expect the
my this year," said Jeff Tuck- built homes has also been the rate averaged 3.64%. last year, according to the housing market will con-
er, senior economist at Zil- red hot. Sales rose in Au- Perhaps the biggest factor Realtors group. tinue to strengthen, despite
low. "For Americans whose gust by 4.8% to a season- in the housing comeback, While it took home sales uncertainty about when
finances are still intact, ally adjusted annual rate of though, is the severe imbal- years to recover after the the economy will recover
folks with good credit who 1.01 million units, according ance between supply and Great Recession that be- from the pandemic.q

Carnival cancels most 2020 US cruises as CDC extends ban

By DEE-ANN DURBIN gradual and phased in," 3,689 reported coronavirus
AP Business Writer Carnival President Christine cases and 41 deaths
Carnival Cruise Line is Duffy said in a statement. linked to cruises in U.S.
canceling most U.S. sailings Carnival's announcement waters between March
through the end of this came a day after the U.S. and September. The
year, the latest sign that the Centers for Disease Control agency said that is likely an
cruise industry's recovery and Prevention extended a undercount.
from the coronavirus ban on large cruises in U.S. Even before the CDC
pandemic could still be waters through Oct. 31. The announced its decision,
many months away. no-sail order, initially issued the cruise industry had
The company said Thursday in March, had been set to voluntarily suspended U.S.
it is canceling sailings expire on Sept. 30. sailings through Oct. 31.
from all ports except its "Recent passenger Last week, the industry
home ports of Miami and voyages in foreign announced new safety
Port Canaveral, Florida. countries continue to have plans, including COVID
Carnival said it will focus its outbreaks, despite cruise testing for all passengers
initial return to operations ship operators having and crew before boarding.
on those two ports, but it extensive health and safety Carnival rival Norwegian
stressed that it still might protocols," the CDC said. Cruise Line said Thursday In this Saturday, April 4, 2020, file photo, Carnival cruise line ship
not sail from those ports in It noted cruise ships force that it hasn't canceled Carnival Magic is docked at Port Canaveral, in Cape Canaveral,
November and December. people to share spaces any scheduled cruises and Fla.
"As we have said that are more crowded remains optimistic it can Associated Press
throughout this pause, our than typical urban settings. resume U.S. operations November cruises from and New York to Bermuda
return to operations will be The CDC said it knows of soon. Norwegian is listing Florida to the Bahamas on its website.q