Saturday October 10th, 2015 3:01AM

Home sales edged up 1 percent in December

By The Associated Press
WASHINGTON (AP) -- Sales of existing U.S. homes edged up slightly in December, helping to lift sales for the year to the highest level in seven years.

Sales increased to an annual rate of 4.87 million units last month, up 1 percent from the November sales pace, the National Association of Realtors reported Thursday. However, both months represented a slower pace of sales than earlier in 2013, reflecting the drag from higher mortgage rates and higher home prices.

For all of 2013, sales totaled 5.09 million, the best performance since 2006, when sales totaled 6.48 million. However, the sales gains in both 2005 and 2006 represented an unsustainable housing bubble. Analysts say a more normal sales pace currently would be around 5.5 million units.

The median price of an existing home rose 11.5 percent last year to $197,100, the highest in eight years.

Sales of previously owned homes are up 19.5 percent since 2011 but sales fell from September through November and the December level is still 9.6 percent below the summer peak.

"We lost some momentum toward the end of 2013 from disappointing job growth and limited inventory, but we ended with a year that was close to normal given the size of our population," said Lawrence Yun, chief economist for the Realtors.

Yun is forecasting sales will remain around the 2013 level of 5.09 million in 2014 as such factors as tighter mortgage lending standards and limited inventories impede further progress in the housing market.

Total housing inventory at the end of December was down 9.3 percent to 1.86 million existing homes available for sale. That represents a 4.6 month supply at the December sales pace.

By region of the country, sales fell 4.3 percent in the Midwest and were down 1.3 percent in the Northeast. Sales were up 3 percent in the South and rose 4.8 percent in the West.

Over the summer, re-sales reached a pace of 5.39 million, the fastest in four years. But sales began to slow in September as the costs of buying a home rose.

Mortgage rates rose to nearly a full percentage point higher than they were in the spring, when they were at record lows. And a limited supply of homes on the market helped drive up prices. The combination of rising mortgage rates and rising prices made home buying less affordable, particularly for first-time buyers.

Builders started work on 923,000 new homes and apartments in 2013, up 18.3 percent from 2012. It was the fourth straight annual gain and the strongest construction pace since 2007 when 1.36 million homes were started. Economists are looking for further construction gains in 2014.
© Copyright 2015 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Judge denies motions to move, delay Tsarnaev trial
Lawyers for Boston Marathon bombing suspect Dzhokhar Tsarnaev asked a federal appeals court Wednesday to overturn a judge's decision to not move his upcoming trial out of state.
10:02PM ( 9 months ago )
High court to adopt electronic filing of cases
The Supreme Court is belatedly developing an electronic filing system similar to those used in courts around the country, Chief Justice John Roberts said Wednesday in his annual end-of-year report.
7:57PM ( 9 months ago )
Storm brings snow, cold to West for New Year's
A blustery winter storm dumped snow and ice across the West on Wednesday, making driving treacherous in the mountains from California to the Rockies and forcing residents and party-goers in some usually sun-soaked cities to bundle up for a frosty New Year's.
5:19PM ( 9 months ago )
U.S. News
State DOT awards $48M contract for NE Ga. road project
The state Department of Transportation has awarded a $47.8 million contract for nine miles of work on a northeast Georgia road.
9:37AM ( 9 months ago )
Business News
Grass fire impacts rush hour traffic on 985
Rush hour traffic on I-985 was slowed by a grass fire Wednesay afternoon with one lane closed while firefighters fought the blaze.
10:19PM ( 9 months ago )
Hall County conviction, sentencing to be reviewed by SCOGA
The State Supreme Court has agreed to hear the appeal of a Hall County man when they reconvene in January.
2:37PM ( 9 months ago )
Maysville man dies from Banks County wreck
The Georgia State Patrol reports that alcohol and/or drugs were factors a single-vehicle wreck that claimed the life of a Maysville man in Banks County Tuesday night.
11:07AM ( 9 months ago )
Local/State News
UN is next stop for Obama after success with Iran, pope; top issues are IS, Syria, Russia
NEW YORK (AP) — Fresh from successes on Iran and with the pope, President Barack Obama still carried heavy burdens into critical meetings this week at the U.N. General Assembly.They include the threat...
3:31PM ( 1 week ago )
Stunning Congress, House Speaker Boehner announces plans to resign; tea party declares victory
WASHINGTON (AP) — Plunging Congress into deeper turmoil, House Speaker John Boehner abruptly announced his resignation Friday, shutting down a tea party drive to depose the nation's highest-ranking Re...
6:14PM ( 2 weeks ago )
Tornado heavily damages 10 homes but causes no injuries on island in South Carolina
JOHNS ISLAND, S.C. (AP) — A tornado quickly blew through a neighborhood on the South Carolina coast early Friday and blew out windows, knocked down trees and heavily damaged ten homes.The tornado touc...
5:08PM ( 2 weeks ago )
Caterpillar says it may cut more than 10,000 jobs by 2018, lowers 2015 revenue expectation
Caterpillar is planning another round of job cuts that could exceed 10,000 people through 2018, as the construction and mining equipment maker adjusts to downturns in key markets.That could amount to...
10:06AM ( 2 weeks ago )
Escaped tarantula grounds Atlanta-bound flight in Baltimore
An eight-legged creature that escaped in the cargo hold of a passenger flight from Baltimore-Washington International Airport to Atlanta's Hartsfield-Jackson International grounded the plane and sent passengers onto another flight.
By The Associated Press
9:06AM ( 2 weeks ago )