NAR: Home sales up 4.9% in '09

While September through November saw a rise in the rate of resale home sales that was fueled at least in part by federal tax credits to homebuyers, December saw a monthly decrease in sales, according to a report released by the National Association of Realtors.

At the same time, both prices and sales rose year-over-year in December, and total sales grew in 2009 compared to 2008.

The rate of resale home sales dropped 16.7 percent last month to a seasonally adjusted annual rate of 5.45 million units from 6.54 milllion in November, but rose 15 percent year-over-year, from 4.74 million units. Resale homes include single-family homes, townhouses, condominiums, and co-ops, the association reported.

"It's significant that home sales remain above year-ago levels, but the market is going through a period of swings driven by the tax credit," said Lawrence Yun, the association's chief economist.

"By early summer the overall market should benefit from more balanced inventory, and sales are on track to rise again in 2010. However, the job market remains a concern and could dampen the housing recovery -- job creation is key to a continued recovery in the second half of the year."

Coinciding with the extension of the homebuyer tax credit to include current homeowners, the share of homes bought by first-time homebuyers fell to 43 percent, from 51 percent in November, while repeat buyers increased to 42 percent in December from 37 percent a month earlier.

The sales rate of resale homes increased 4.9 percent in 2009, to 5.16 million from 4.91 million the year before. It was the first annual sales increase since 2005, the report said.

December also saw the first year-over-year increase in median price since August 2007, with a 1.5 percent increase to $178,300, according to the report. Yun attributed the gain to an increase in the number of mid-priced to higher-priced homes on the market. ...CONTINUED

All rights reserved. This content may not be used or reproduced in any manner whatsoever, in part or in whole, without written permission of Inman News. Use of this content without permission is a violation of federal copyright law.