Previously Owned U.S. Home Sales Climb to 4.92 Million (best year since 2007)

Source: Bloomberg

By Shobhana Chandra - Feb 21, 2013
Sales of previously owned U.S. homes increased in January, showing more momentum for the industry coming off its best year since 2007.

Purchases of existing houses, tabulated when a contract closes, increased 0.4 percent to a 4.92 million annual rate, figures from the National Association of Realtors showed today in Washington. The median forecast of 79 economists surveyed by Bloomberg called for a 4.9 million pace. The number of available properties slumped to the lowest level since 1999.

A sustained pickup in housing will depend on faster progress in the labor market, fewer foreclosures and easier access to credit. Mortgage rates close to all-time lows and the prospect of firming prices are luring buyers at the same time the inventory of homes shrinks and limits bigger gains in sales.

“It’s a good start to the year,” said Carl Riccadonna, senior U.S. economist at Deutsche Bank Securities Inc. in New York, who projected a 4.9 million rate. “Incomes continue to rise, interest rates are low and inventory is lean. The outlook is improving.”

Read more: http://www.bloomberg.com/news/2013-02-21/previously-owned-u-s-home-sales-climb-to-4-92-million.html