According to the National Association of Realtors (NAR), total existing-home sales in 2012 were the highest in five years, while the annual price rose the most since 2005. The preliminary annual total for existing-home sales in 2012 was up 9.2 percent from 2011, representing the highest volume since 2007 and the strongest increase since 2004.
Lawrence Yun, NAR chief economist, said pent-up demand is sustaining the market. “The number of potential buyers who stayed on the sidelines accumulated during the recession, but they started entering the market early last year as their financial ability and confidence steadily grew, along with home prices,” he said. “Likely job creation and household formation will continue to fuel that growth. Both sales and prices will again be higher in 2013.”
In addition, NAR reported that existing-home sales eased 1 percent in December but are 12.8 percent above the level of sales in December 2011. At the same time, limited inventory helped maintain the upward momentum in home prices during December.
