Despite the fact that the month-over-month numbers can technically be labeled an improvement, December is now the secondrnconsecutive month showing deterioration in the year-over-year figures.  </p

NAR is focusing on the positive, saying that existing home sales forrn2013 were the strongest in seven years and median prices maintained strongrngrowth through the year.  NAR reportsrnthat for all of 2013, there were 5.09 million existing home sales, which is 9.1rnpercent higher than 2012. It was the strongest performance since 2006, the lastrnyear of the housing boom, when sales reached 6.48 million. </p

For the entirety of 2013 the national median existing-home price wasrn$197,100, which is 11.5 percent above the 2012 median of $176,800, and was thernstrongest gain since 2005 when it rose 12.4 percent.  </p

LawrencernYun, NAR chief economist, said housing has experienced a healthyrnrecovery over the past two years. “Existing-home sales have risen nearly 20rnpercent since 2011, with job growth, record low mortgage interest rates and arnlarge pent-up demand driving the market,” he said. “We lost some momentumrntoward the end of 2013 from disappointing job growth and limited inventory, butrnwe ended with a year that was close to normal given the size of ourrnpopulation.”</p

In addition to summary information onrnsales for the past year, today’s NAR release contained its regular monthlyrnstatistics on existing home sales.  In  including sales of single-family houses,rncondominiums, townhouses, and cooperative apartments,</p

Single-family home sales in December rosern1.9 percent to a seasonally adjusted annual rate of 4.30 million from 4.22rnmillion in November, but are 0.7 percent below the 4.33 million-unit pace inrnDecember 2012.  Existing condominium andrnco-op sales fell 5.0 percent to an annual rate of 570,000 units in Decemberrnfrom 600,000 units in November, and are unchanged from a year ago.</p

The median existing-home price for all housing types in December wasrn$198,000, up 9.9 percent from December 2012.  Single-family homes had a median price ofrn$197,900, up 9.8 percent from a year ago and the condo price was $198,600, 10.9rnpercent above December 2012.</p

Foreclosures accounted for 10 percent of December sales and short sales forrn4 percent, unchanged from aggregate distressed sales of 14 percent in Novemberrnbut a drop of 10 percentage points from December 2012.  Foreclosures sold for an average discount ofrn18 percent below market value in December, while short sales were discounted 13rnpercent.  NAR said the shrinking share ofrndistressed sales accounts for some of the overall price growth.</p

Total housing inventory at the end of December fell 9.3 percent to 1.86rnmillion existing homes available for sale, which represents a 4.6-month supplyrnat the current sales pace, down from 5.1 months in November. Unsold inventoryrnis 1.6 percent above a year ago, when there was a 4.5-month supply.  Homes took a median of 72 days to sell inrnDecember compared to 56 days in November but about the same as in Decemberrn2012.   Twenty-eight percent of homesrnsold in December were on the market for less than a month, down from 35 percentrnin November, which NAR said appears to be a result of the weather. </p

NAR President Steve Brown said that with jobs expected to improve this year,rnsales should hold even despite rising home prices and higher mortgage interestrnrates. “The only factors holding us back from a stronger recovery are thernongoing issues of restrictive mortgage credit and constrained inventory,” hernsaid. “With strict new mortgage rules in place, we will be monitoring thernlending environment to ensure that financially qualified buyers can access therncredit they need to purchase a home.”</p

First-time buyers accounted for 27 percent of purchases in December, downrnfrom 28 percent in November and 30 percent in December 2012.  Investors purchased 21 percent of homes, downrntwo points from November but the same percentage as a year earlier, andrnaccounted for many of the 32 percent of December transactions which were allrncash sales.</p

Regionally, existing-home sales in the Northeast slipped 1.5 percent to anrnannual rate of 640,000 in December, but are 3.2 percent higher than Decemberrn2012. The median price in the Northeast was $239,300, up 3.6 percent from arnyear ago.</p

Existing-home sales in the Midwest fell 4.3 percent in December to a pace ofrn1.11 million, and are 0.9 percent below a year ago. The median price in thernMidwest was $150,700, which is 7.0 percent higher than December 2012.</p

In the South, existing-home sales increased 3.0 percent to an annual levelrnof 2.03 million in December, and are 4.6 percent above December 2012. Thernmedian price in the South was $173,200, up 8.9 percent from a year ago.</p

Existing-home sales in the West rose 4.8 percent to a pace of 1.09 millionrnin December, but are 10.7 percent below a year ago. Inventory is tightest inrnthe West, which is holding down sales in many markets, and multiple bidding isrncausing it to experience the strongest price gains in the U.S. The median pricernin the West was $285,000, up 16.0 percent from December 2012.

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