Resales Edge Up

Sales of single-family existing homes edged up 0.5% in January -- the first rise since February of last year -- and it appears that sales are "scratching the bottom," according to Lawrence Yun, chief economist of the National Association of Realtors. Sales have been "soft but fairly steady" over the past five months, Mr. Yun told reporters, and he said he expects sales to move higher later this year as higher loan limits for Fannie Mae, Freddie Mac, and Federal Housing Administration mortgages take effect. The National Association of Realtors reported that resales rose from a seasonally adjusted annual rate of 4.32 million in December to 4.34 million in January. The median price of previously owned homes was $198,700 in January, down 5.1% from that of a year earlier, while the inventory of unsold single-family homes rose 7.7% to 3.65 million. This inventory translates into a 10-month supply at the current sales pace. An NAR survey found that 80% of sellers put their homes on the market because they want to trade up or purchase another home. Mr. Yun said a homebuyer tax credit could break this logjam and bring into the market more buyers that are cautiously waiting on the sidelines.