December 2011 Existing Home Sales Increase By 5 Percent To January 2011 Levels:
The housing market shows more signs of improvement.
Existing home sales rose last month as homebuyers took advantage of low mortgage rates and cheaper housing prices compared to prior years. Existing home sales rose 5 percent in December 2011 the National Association of Realtors said Friday. Home sales rose to the seasonally adjusted rate of 4.61 million which is the third monthly increase in a row and is the highest level since January 2011 although still far off from 6 million that would be considered an expansionary housing market.
In 2011, existing home sales rose to 4.26 million from 4.19 million in 2010 which is more evidence that the housing market neared or found a bottom and coincides with newfound optimism on the part of homebuilders that has increased for the past 4 months. The economy may be expanding at a faster rate than anticipated with wages rising and unemployment falling. Although housing is less of a factor in the overall economy, improvements to the housing market will help GDP rise closer to normal levels around 3 percent if current trends hold.
