Depressed Home Prices Boost Sales

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Sales of existing U.S. homes rose a seasonally adjusted 2.7% from December to January, to a better-than-expected 5.36 million, according to the National Association of Realtors.

That figure is an eight-month high and the fifth rise in six months, as buyers were enticed by falling home prices.

Year-over-year, sales rose 5.3%, so that activity is now above the level when the home buyer tax credit expired in 2010, putting pressure on home sales.

Without season adjustment, sales would have fallen 30% from December, but that is not unusual for the slow winter season.

While a somewhat improved employment outlook and recent rosier economic outlook contributed to the gain, buyers are also likely taking advantage of depressed home prices, which some see as susceptible to further pricing pressure.



Original Article Source by Barrons.com