U.S. Existing Home Sales and Inventory in December Show Encouraging Numbers

Published by nora | Filed under Buyer / Seller Tips, Real Estate

The surge in existing home sales nationwide in December is an encouraging development for housing market participants. Other sales figures released by the National Association of Realtors are also showing improvements in the residential real estate market.

Rise in Sales of Existing Homes in December

Across the country, pre-owned home sales rose in December 2011 by 5 percent from an adjusted rate of 4.39 million units in November to an adjusted rate of 4.61 million units. Over the year, the rate also increased, by 3.6 percent from 4.45 units in December 2010. This rate includes sales of all kinds of pre-owned housing units, including condos, single-family homes, townhouses, villas and co-ops.

The existing condo and co-op category also showed improvement. Sales of pre-owned condos and co-ops also increased over the month, jumping by 8.7 percent from an adjusted pace of 460,000 condo and co-op units in November to 500,000 co-op and condo units in December.

Rise in Sales of Existing Homes in 2011

As to sales of existing homes during the entire year, numbers were also on an upward trend. Total sales of pre-owned homes in 2011 were higher by 1.7 percent from the total in 2010, with 4.26 million units sold in 2011 and 4.19 million units sold in 2010.

Decrease in U.S. Housing Inventory in December

The inventory of existing homes nationwide which were listed for sale fell at the end of December to only 2.38 million units, its lowest point in nearly 7 years and creeping down close to the 2.3-million level in March 2005. The year-over-year fall was 9.2 percent and the month-over-month drop was 7.2 percent. The 2.38-million level is almost just one half of the biggest figure in July 2007 when 4.04 million pre-owned homes were available on the market.

A decreasing housing inventory can be interpreted as a sign of market improvement as a low inventory prompts competition among buyers and pushes home prices to go up. It also shows that buyers and investors have been out there on the market, moving homes from the MLS lists putting them under their ownership.

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