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Figures published yesterday in a report on the national housing market show that consumers purchased more new homes in September than in any month yet this year. The increase of 14.1% over last month directly contradicts the predictions of market analysts.
“ It was a real shock to most of us,” admitted Lashawnda Cassano, chief economist with the firm Capital Resources, LLTG. “ New-home sales were down so much in August and July that we simply expected the trend to continue. But this changes everything.’’
The report states that 71,000 homes were sold in the month of September. That is well above the figure of 62,000 sold in August and July’s one of 64,000. Previous months had seen the number holding steady at around 68,000. These new numbers are sure to encourage investors, who have been hesitant to put their trust in the country’s economy since last spring’s downturn. All three national stock markets jumped up at least ten points on the news.
The report is also likely to boost construction of new homes, as builders interpret it as a rise in consumer demand. However, if they react too enthusiastically, they risk flooding the market with new houses. Which could have the effect of pushing down prices and cutting into the profits of the real estate industry.
1. What does this article mainly discuss?
A. An investment firm’s sales figures.
B. A recession’s stock market activity.
C. Yesterday’s stock market activity.
D. An economic report’s unexpected findings
2. The word “ holding” in paragraph 3, line 2 is closest in meaning to _____.
A. supporting B. remaining C. acquiring D. owning
3. About how many new homes were sold in June of this year?
A. 62,000 B. 64,000 C. 68,000 D. 71,000
4. What warning does the article give?
A. Too much construction could have negative effects.
B. The contents of the report could be inaccurate.
C. Investors could pull out of the real estate industry.
D. The national economy could suffer a downturn.