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January Home Sales, Prices Push Higher

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The selling season in 2012 started early and continued through the whole year. Now, the new year is starting at levels even higher than last January. The January RE/MAX National Housing Report shows the recovery continues with sales up 9.1 percent and prices up 8.0 percent from January last year.

Falling inventories are both a positive and negative factor for the recovery. They have pushed prices higher, which helps underwater homeowners, but have also created a shortage of homes for potential buyers. The inventory of homes for sale remains 28.9 percent below the levels seen in January 2012. With fewer distressed properties and underwater homes, more home sellers in 2013 may be persuaded to place their homes on the market and move up. As the inventory issue works its way back to a traditional balance, the housing market should continue a robust recovery in 2013.

For more information, visit www.remax.com.

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