Existing Home Sales Rise 12.3% in December

Washington, DC, Jan. 20, 2011 -- Home resales rose substantially in December, as sales increased for the fifth time in the past six months, according to the National Association of Realtors.

Existing-home sales rose 12.3% to an annual rate of 5.28 million in December from an upwardly revised 4.70 million in November, but remain 2.9% below the 5.44 million pace in December 2009.

Lawrence Yun, NAR chief economist, said sales are on an uptrend.

"December was a good finish to 2010, when sales fluctuate more than normal. The pattern over the past six months is clearly showing a recovery." he said.

"The December pace is near the volume we're expecting for 2011, so the market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership while exceptional affordability conditions remain."

The national median price for all housing types was $168,800 in December, which is 1.0% below December 2009.

Distressed homes rose to a 36% market share in December from 33% in November, and 32% in December 2009.

Total housing inventory at the end of December fell 4.2%t to 3.56 million existing homes available for sale, which represents an 8.1-month supply at the current sales pace, down from a 9.5-month supply in November.