Existing Home Sales Increase in December

December showed a surprising increase in home sales across the country, a positive sign in a world of uncertainty.  According to realtor.org, existing home sales rose 6.5% in December, a nice increase in a tough year.  Home prices have been falling as have interest rates, creating a perfect climate for home buyers.  The factors that make buying a home attractive to potential home buyers are falling into place and while there is no way of knowing whether real estate prices have hit the bottom it is certain that if they are not at the bottom they will be soon.

In a recent article NAR chief economist Lawrence Yun said “home prices continue to fall significantly. It appears some buyers are taking advantage of much lower home prices,” he said. “The higher monthly sales gain and falling inventory are steps in the right direction, but the market is still far from normal balanced conditions. Buyers will continue to have an edge over sellers for the foreseeable future.”

A true real estate investor wants to buy real estate when it is a buyer’s market and sell in a seller’s market.  All signs point to this time being a great time to buy.  The absolute bottom will only be known when it has already hit and the market is on the rise again.