Existing home sales increased 5.6% in November to an annual pace of 4.68 million homes, in line with expectations and following an annual rate of 4.43 million homes in October.
Home resales are slowly increasing nationally, but remain 17.3% below April’s homebuyer tax credit fueled level and are off 35.4% from their September 2005 peak level.
Distressed sales accounted for about one-third of total sales despite the foreclosure moratoriums.
Regionally, sales were up moderately in all areas. The inventory of homes available for sale fell 4.0% last month to a level of 3.71 million homes, which reflects a 9.5 month-supply at the current sales pace. The inventory level is down from a 10.5 month supply in October.
Sales prices held up in November as median prices gained 0.4% over the last year to $170,600 while average prices were up 3.3% to 218,800. After declining between 2006 and 2008, housing prices have holding at a bottom level for the last two years nationally.
A national recovery of the real estate market will come about after the large supply of homes and distressed properties have been sold and demand drivers, such as job and income growth, have returned to stronger levels. Gains in the housing market should begin to pick up in the later part of 2011.
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