December existing-home sales increased
Posted on Tuesday, January 24, 2012 at 10:31:20 AM
Following a three month trend, existing-home sales have continued to rise, according to the National Association of Realtors.
Existing-home sales in December grew by 5 percent to an annual rate of $4.61 million. While this is less than the predicted rate of 5.2 percent to $4.65 million, it still shows promise. An increase in residential lending as the economy improves has assisted the upward trend of home sales.
“The pattern of home sales in recent months demonstrates a market in recovery,” said Lawrence Yun, NAR chief economist. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market.”
The increase in existing-home sales have decreased total housing inventory to 9.2 percent or 2.38 million homes available for sale by the end of December. The available housing inventory has steadily decreased since reaching a record high of 4.04 million in July 2007.
The decline in available existing-homes on the market for sale shows industry improvement as more and more consumers are entering homeownership.