Existing home sales jumped and it looks like recovery is on the move. Home sales rose again in December, which was another small increase that housing has seen over the past six months, according to the National Association of Realtors®.
The National Association of Realtors® believes sales are on an upward trend. December was a good finish for 2010, showing a recovery over the past six months. December's pace is near the volume many people are expecting for 2011. The market is getting closer to a sustainable level. Recovery will likely continue as job growth gains and rising rents make more renters want to be homeowners while exceptional affordability remains.
The existing home price for all housing types was $168,000 in December. Distressed homes rose 36% from November's 33% and 32% in December 2009. The National Association of Realtors® said buyers are responding to very good affordability conditions despite the tight mortgage credit. Low mortgage interest rates, stable home prices and demand are drawing home buyers into the market once again.
Freddie Mac says the national average rate for a 30-year fixed rate rose 4.71% in December from November's 4.30% and the rate in December 2009 was 4.93%. An NAR survey shows first time buyers purchased 33% of homes in December and are below a 43% share from December 2009.
A glance at existing home sales regionally:
* Northeast jumped 13%. The median price was $237,000.
* Midwest rose 11.0% . The median price was $139,000.
* South increased 10.1%. The median price was $148,000.
* West surged 16.7%. The median price was $204,000.
For more information, visit www.realtor.org.
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