Existing Home Sales Up in December

December existing home sales were up last month, but less than expected. The 5% increase from November, while 3.6% above December 2010, was still below the 5.2% increase economists expected.

The “glass-half-full” outlook:

  • home sales increased for the third straight month, to the highest level since January 2011.
  • The number of previously owned homes on the market is now 2.38 million, a six-year low.
  • Total sales for the year were 4.26 million, up 1.7% from 4.19 million in 2010. In 2008, the worst year of the recent housing bust, 4.11 million homes were sold.
  • Home sales for December increased from November in all four regions in the U.S.:
    1. +10.7% in the Northeast
      +2.9% in the South
      +8.3% in the Midwest
      +2.6% in the West

    • Milder-than-normal December weather may have helped home sales.

    If low prices and mortgage rates and rising employment continue, the good news may just continue to roll.

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