Home > Avid Law Center > December home sales improve

December home sales improve

There’s at least one sign of recovery in this market: The annual homes sales pace in December reached 4.6 million homes, up 5% from November’s pace and 3.6% from a year ago.

According to the National Association of Realtors on CNN Money, it was the third straight month of improvement in the pace of sales. The fourth-quarter sales volume lifted full-year sales to 4.26 million homes, up 1.7% from 2010 levels.

According to CNN Money:

“Home prices, however, remained depressed, largely because distressed sales continue to make up a significant part of the market.

Realtors said foreclosed homes sold for an average discount of 22% below market value in December, compared to a 20% discount a year ago. Meanwhile, short sales, which are homes sold for less than the amount owed on a mortgage, sold for a 13% discount, compared to a 16% discount in December 2010.

Foreclosures made up 21% of all sales, while short sales were 12%. Both figures were comparable to 2010.”

Joseph LaVorgna, chief U.S. economist for Deutsche Bank, said the current conditions should lead to improved prices and sales in the near term.

Other promising movement: A survey of home builders also showed an optimistic view of current sales conditions and customer traffic and the government’s report on home building is also showing improvement.

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