Real Estate Market Update - 2010 National Review
The National Association of REALTORS (NAR) reports another steep rise in existing-home sales, which jumped for the fifth time in six months. Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums and co-ops, improved 12.3 percent in December, and finished the year strong on a seasonally adjusted rate of 5.28 million units.
"December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery,” said Lawrence Yun, NAR chief economist. "The December pace is near the volume we’re expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain."
First-time home buyers accounted for 33 percent of all transactions, up from 32 percent in November. Investors were responsible for 20 percent of the December transactions, up from 19 percent in November. The remaining purchases were made by repeat buyers. NAR President Ron Phipps said buyers are responding to good affordability conditions. "Historically low mortgage interest rates, stable home prices, and pent-up demand are drawing home buyers into the market," Phipps said.
