Pending home sales up in December, prices expected to rise bye end of year
The National Association of Realtors reports pending home sales jumped 2 percent in December, continuing a positive trend in home activity.
"Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions," said Lawrence Yun, chief economist for NAR. "Mortgage rates should rise only modestly in the months ahead, so we'll continue to see a favorable environment for buyers with good credit."
He added that pending home sales in the Midwest and South rose substantially from the month before, at 8 and 11.5 percent, respectively. Sales in the South are 1.7 percent above the figures from the same month one year earlier, and sales also increased modestly in the Northeast, with a hike of 1.8 percent.
"The latest pending sales gain suggests activity is very close to a sustainable, healthy volume of a mid-5 million total annual home sales," Yun said.
In addition to pending home sales, new homes sold well in December, too. The Commerce Department states sales of single-family homes in the month rose 17.5 percent from November.
Though prices of homes for sale are expected to drop in the middle of this year, experts state prices should rise at the end of 2011, Reuters reports. According to a poll conducted by Reuters, 14 of 26 economists said home values will drop in the second or third quarter, but will increase in the fourth quarter.
"A pullback in prices following the expiration of the homebuyers tax credit was not a surprise," economist Scott Brown told the news source. "Ultimately, a recovery in the housing sector will depend critically on the job market, which should improve over time."
The source states that the median prediction for a home price dip in the middle of 2011 was only 3.3 percent, and that prices should rise 2.1 percent by the end of the year.
"Housing is showing a ray of hope, but is still far from healed," Diane Swonk, of Mesirow Financial, told the news source, adding that housing market activity may increase considerably by the end of the year.
While many economists surveyed said home values should increase this year, other experts say unemployment will decrease and more Americans will find jobs this year. The Financial Forecast Center states unemployment should drop to 9 percent by August, a decrease of 0.5 percent from January.
Other indications of a progressing jobs market, and in turn, a developing housing market, in the U.S. was reported by CNNMoney. Experts surveyed by the news source said that unemployment should fall in 2011 after three years of modest rises.
According to the survey, economists are projecting an average increase of 2.5 million jobs nationally this year, while some were more confident in a bounce-back year for employment, estimating at least 3 million jobs will be created. The group of economists also reportedly said the unemployment rate should remain around 9 percent.
"Modest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions," said Lawrence Yun, chief economist for NAR. "Mortgage rates should rise only modestly in the months ahead, so we'll continue to see a favorable environment for buyers with good credit."
He added that pending home sales in the Midwest and South rose substantially from the month before, at 8 and 11.5 percent, respectively. Sales in the South are 1.7 percent above the figures from the same month one year earlier, and sales also increased modestly in the Northeast, with a hike of 1.8 percent.
"The latest pending sales gain suggests activity is very close to a sustainable, healthy volume of a mid-5 million total annual home sales," Yun said.
In addition to pending home sales, new homes sold well in December, too. The Commerce Department states sales of single-family homes in the month rose 17.5 percent from November.
Though prices of homes for sale are expected to drop in the middle of this year, experts state prices should rise at the end of 2011, Reuters reports. According to a poll conducted by Reuters, 14 of 26 economists said home values will drop in the second or third quarter, but will increase in the fourth quarter.
"A pullback in prices following the expiration of the homebuyers tax credit was not a surprise," economist Scott Brown told the news source. "Ultimately, a recovery in the housing sector will depend critically on the job market, which should improve over time."
The source states that the median prediction for a home price dip in the middle of 2011 was only 3.3 percent, and that prices should rise 2.1 percent by the end of the year.
"Housing is showing a ray of hope, but is still far from healed," Diane Swonk, of Mesirow Financial, told the news source, adding that housing market activity may increase considerably by the end of the year.
While many economists surveyed said home values should increase this year, other experts say unemployment will decrease and more Americans will find jobs this year. The Financial Forecast Center states unemployment should drop to 9 percent by August, a decrease of 0.5 percent from January.
Other indications of a progressing jobs market, and in turn, a developing housing market, in the U.S. was reported by CNNMoney. Experts surveyed by the news source said that unemployment should fall in 2011 after three years of modest rises.
According to the survey, economists are projecting an average increase of 2.5 million jobs nationally this year, while some were more confident in a bounce-back year for employment, estimating at least 3 million jobs will be created. The group of economists also reportedly said the unemployment rate should remain around 9 percent.
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