Existing home sales continue to be the beacon of hope in this housing recovery. Sales of existing homes jumped in December, marking the fifth month of gains in the past six months, based on an industry report released Thursday.
Previously-owned home sales climbed 12.3% in December to an annual rate of 5.28 million, from 4.70 million in November, according to the National Association of Realtors. That puts sales at the highest level since the homebuyer tax credit expired in June.
The December rate came in much higher than expected. A consensus of experts surveyed by Briefing.com had forecast an annualized sales rate of 4.8 million. I told you the holidays can be economically fruitful, serious buyers have serious money!
This is still a battle, however. There is enough inventory to last 8.1 months, down from a 9.5-month supply in November. That said, sales are expected to gradually improve -- rising about 4% or 5% -- by the end of 2011, as the employment picture improves. Job growth and homebuying are intrinsically linked; as long as job growth continues to rise, the housing market will continue to improve.
Comments(0)