According to what forbes tells MHProNews, completed transactions of home sales (condos, single-family homes, townhomes and co-ops) rose to a seasonally-adjusted annual rate (SAAR) of 5.46 million in Dec., an increase from the 4.76 million pace in Nov., 2015. Dec. sales were up by 7.7 percent over Dec. 2014.
The NAR said the new mortgage rules delayed closings of some of Nov. sales until Dec., which caused the Dec. pace to loom large.
Lawrence Yun, NAR’s chief economist, said, “While the carryover of November’s delayed transactions into December contributed greatly to the sharp increase, the overall pace taken together indicates sales these last two months maintained the healthy level of activity seen in most of 2015. Additionally, the prospect of higher mortgage rates in coming months and warm November and December weather allowed more homes to close before the end of the year.”
The inventory of existing homes for sale tightened at the end of Dec. by 12.3 percent to 1.79 million existing homes, which amounts to a 3.9 month supply at the current sales pace. That marks a significant drop from the 5.1 months in Nov., which is the lowest since Jan. 2005, when the supply was at 3.6 months. Economists consider a six-month supply a healthy market. ##
(Photo credit:mattheafey)
