Existing-home sales rose for a third consecutive month, according to a January report by the National Association of REALTORS (NAR). Existing-home sales, which include recently purchased single family, townhomes, condominiums, and co-ops were up 5 percent from the previous month, to a seasonally adjusted rate of 4.61 million units. In total, 2011 existing-home sales were up 1.7 percent from 2010, and reached 4.26 million units sold.
Lawrence Yun, NAR chief economist, believes the trend could point to a sustained recovery. "The pattern of home sales in recent months demonstrates a market in recovery," he said. “Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."
National inventory for existing homes decreased by 9.2 percent in December, leaving 2.38 million units available for sale. This representing a 6.2 month supply of homes at today's current sales pace. Existing-home inventories have been shrinking from their record levels of 4.04 million set in July 2007.
NAR President Moe Veissi anticipates even more buyers in the near future. "The American dream of homeownership is alive and well. We have a large pent-up demand, and household formation is likely to return to normal as the job market steadily improves," he said. "More buyers coming into the market mean additional benefits for the overall economy. When people buy homes, they stimulate a lot of related goods and services."
