Compared to 2012, existing-home sales in 2013 increased 9.1 percent to 5.09 million, marking the strongest performance since 2006, “when sales reached an unsustainably high 6.48 million at the close of the housing boom,” NAR said.
NAR Chief Economist Lawrence Yun said the housing market has experienced a healthy recovery over the past two years. Job growth, pent-up demand and low mortgage rates have helped drive up existing-home sales nearly 20 percent since 2011, he said.
Despite the improvement, Yun noted that the recovery has slowed recently.
“We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population,” he said.
Existing-home sales edged up slightly in December, rising 1 percent to a seasonally adjusted annual rate of 4.87 million from a downwardly revised 4.82 million in November. But sales that month were still down 0.6 percent on an annual basis.
In November, existing-home sales dipped on an annual basis for the first time in more than two years, NAR previously reported.
Economists say that a spike in mortgage rates that occurred last spring may have partly induced the recent slowdown.
Inventory shortages have also served as a headwind
The outlook on that front did not improve in December. Housing inventory last month fell 9.3 percent to 1.86 million existing homes available for sale. That represents a 4.6-month supply of homes at the current sales pace, down from 5.1 months a month ago but up 1.6 percent year over year.
NAR reported that pending home sales, a forward-looking indicator based on sales under contract, remained mostly flat in November. At the time, Lawrence Yun said the market may have hit a “cyclical low.”
Other barometers paint a rosier picture of the housing market. Construction of new single-family homes and new-home sales have grown substantially in the last year.
Contact me at (714) 914 9060 or email@example.com for all you real estate wants and needs.
Latest posts by Renee West (see all)
- Custom built interior1 bedroom 1.5 bath condo. Located in the Vista Del Lido complex. Listed for $1,999,999. Contact me to see this exclusive condo. - January 12, 2018
- Resort-like estate in27500 La Vida,Los Altos Hills, one of Silicon Valley’s exclusive residential communities.Offered for $68,000,000. - January 2, 2018
- Magnificent home located in Ritz Cove. Guard-gated community setbetween the Five Star Ritz Carlton Hoteland the Monarch Beach Resort in Dana Point. Offered for $13,450,000. - December 31, 2017