Home sales are increasing slightly. Economists are theorizing that it’s due to the job market picking-up also and home prices stabilizing. But total home sales are still expected to be weaker than past numbers:
Completed home sales — which the Realtors group measures in a separate report — are expected to total about 4.8 million units this year. That’s much lower than the 6 million units that analysts consider a healthy pace. The last time sales were lower was 13 years ago when sales totaled 4.4 million units.
And many sales are expected to be short sales and foreclosures:
A third of the pending sales likely will be foreclosures or short sales, where a homeowner sells a house for less than what is owed on it, NAR spokesman Walter Molony said. That tracks with the average for the year. These distressed sales go for discounts of up to 50 percent in some of the hardest-hit areas and will continue to weigh down home prices.
Read the rest of the story from the Salt Lake Tribune here: Rise in signed contracts gives housing market lift | The Salt Lake Tribune.