Here's why home sales are finally surging

June 22, 2015

WASHINGTON (AP) - Real estate has gotten hot again.

Home sales are on pace for their best year since 2007. First-time buyers are streaming back into the market. Prices are skyrocketing, aided by a stronger job market and tantalizingly low mortgage rates that are creating pressure for buyers to act fast.

The resurgence is a sign that the U.S. economy - after muddling through a sluggish, six-year recovery - has re-discovered another source of growth. Buyers are more confident about their own prospects. But many also appear ready to close sales quickly because of concerns of being potentially priced out of the market by rising mortgage rates and home values.

By JOSH BOAK
AP Economics Writer

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