November Report Shows Rise In Existing Home Sales
NAR chief economist Lawrence Yun reported a rise in existing home sales for the month of November, which continues a trend since bottoming out in July. The sales rose 5.6% since October’s Existing Home Sales report. Although the total amount still remains approximately 28% below the sales in November 2009, right before the tax-credit for first-time buyers ended, Yun still believes the increase should create hope. He states, “Continuing gains in home sales are encouraging, and the positive impact of steady job creation will more than trump some negative impact from a modest rise in mortgage interest rates, which remain historically favorable”.
Furthermore, both Yun and NAR President Ron Phipps note that current affordability conditions are favorable for buyers. Phipps says that typically the winter months bring in less buyers, so serious buyers will be able to find smart investments in housing.
If economic conditions (especially the creation of new jobs) continue to improve, so will existing home sales. This could mean an overall improvement for the housing market in 2011.
View Lawrence Yun on Realtor TV here: http://link.brightcove.com/services/player/bcpid1465406675?bctid=722399223001
Courtesy of Realtor.org
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