NEW YORK – Existing-home sales were strong in most states during the fourth quarter, as many metro areas saw prices increase from a year earlier, according to the National Association of Realtors.
“Sales increased from the third quarter in 48 states and the District of Columbia; 32 states saw double-digit gains,” NAR said in a release. “Year-over-year sales were higher in 49 states and D.C.; all but three states had double-digit annual increases.”
Existing-home sales soared 13.9% to a seasonally adjusted annual rate of 6.03 million in the fourth quarter from 5.29 million in the third quarter, 27.2% above the 4.74 million-unit level in the fourth quarter of 2008. Distressed property accounted for 32% of transactions in the quarter, down from 37% a year ago.
“The surge in home sales was driven by buyers responding strongly to the [first-time home buyer] tax credit combined with record low mortgage interest rates,” NAR chief economist Lawrence Yun said. “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”
The national average commitment rate on a 30-year conventional fixed-rate mortgage dropped to 4.92% in the fourth quarter from 5.16% in the prior quarter; it was 5.86% in the fourth quarter 2008, according to Freddie Mac.
