Homes sales rebounded in 49 states during the fourth quarter of 2010. In just over half of the metropolitan areas (78 markets), experienced price gains from one year ago, while most of the rest saw weakness, according to the latest survey by the National Association of Realtors.
Total existing home sales, including single family and condo, jumped 15.4% to a seasonally adjusted rate of 4.80 million in the fourth quarter from 4.16 million in the third quarter, but were 19.5% below a surge of 5.97 million in the fourth quarter of 2009. This surge was driven by the initial deadline of the first-time buyer tax credit.
Lawrence Yun, NAR chief economist, is encouraged by the trend. Home sales clearly recovered in the latter part of 2010 and are helping to absorb the inventory, including many distressed properties. Even with foreclosures still entering the inventory, they have been selling well with housing supplies trending down.
An improving housing market and job growth go hand in hand. The housing recovery will mean faster job growth. Yun projects that 150,000 to 200,000 jobs will be added to the economy this year from an anticipated 300,000 additional home sales in 2011.
How has the midwest fared? In the midwest the single family home price rose 0.5% in the fourth quarter from the same period in 2009, but still below the surge from last year, typical everywhere.
With mortgage interest rates at record lows and home prices stabilizing, there couldn't be a better time for those with good credit scores and long term plans to buy.