December Existing Home Sales Rose 5% on Low Rates and Lower Prices
According to new data from the National Association of Realtors (NAR) Friday, existing home sales jumped 5 percent to an annual run-rate of 4.61 million during December. The number topped Street estimates, which called for an improvement to 4.65 million.
The number of homes on the market is now at a six-year low, NAR noted. Properties for sale totaled 2.38 million, a 9.2 percent year-over-year drop and the lowest number since March 2005. The current pace of sales would have those homes sold in 6.2 months, down from 7.2 months in November.
Key factors in the report include lower unemployment, record-low mortgage rates, and bottoming of property prices.
Of the total, existing single-family home sales rose 4.6 percent to an annual rate of 4.11 million, and multifamily property sales popped 8.7 percent to a 500,000 pace.
The Midwest saw sales increase 8.3 percent, while the Northeast led with an 11 percent move higher. All four U.S. regions saw increases, data showed.
The SPDR S&P Homebuilders ETF (NYSE: XHB) is down 2.5 percent Friday afternoon.
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The number of homes on the market is now at a six-year low, NAR noted. Properties for sale totaled 2.38 million, a 9.2 percent year-over-year drop and the lowest number since March 2005. The current pace of sales would have those homes sold in 6.2 months, down from 7.2 months in November.
Key factors in the report include lower unemployment, record-low mortgage rates, and bottoming of property prices.
Of the total, existing single-family home sales rose 4.6 percent to an annual rate of 4.11 million, and multifamily property sales popped 8.7 percent to a 500,000 pace.
The Midwest saw sales increase 8.3 percent, while the Northeast led with an 11 percent move higher. All four U.S. regions saw increases, data showed.
The SPDR S&P Homebuilders ETF (NYSE: XHB) is down 2.5 percent Friday afternoon.
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