Surprise rise in US home sales "With sales improving, prices stabilising and construction activity scrambling to its feet, the housing market has started climbing out of the abyss this year," said Teunis Brosens, an economist at ING. We expect the positive trend to continue. Economists say the importance of a fledgling recovery in housing is sharpened because of the uncertainty American consumers and businesses face over fiscal policy next year. President Barack Obama and Republicans in Congress are negotiating to avoid a series of spending cuts and tax rises due at the start of next year. Even if they reach an agreement to avoid what has been dubbed the fiscal cliff, there is unlikely to be any more clarity on fiscal policy beyond that. Stock markets took some encouragement from the home sale figures, with the S&P 500 climbing 1.5pc to 1,380.4 in late morning trading in New York.