Homes sales surged unexpectedly last month, fueled by record-setting price declines in one of the weakest housing markets in 20 years.
Bargain hunters are making their way through the backlog of homes, but the market remains weak, analysts said. The recession is weighing on potential buyers and ensures that a market recovery — or even stabilization — is not likely soon, they said.
Existing home sales climbed 6.5 percent to a seasonally adjusted annual rate of 4.74 million in December, according to the National Association of Realtors, an industry group. That was better than analysts expected. Sales fell 3.5 percent compared with December 2007.
These “are steps in the right direction, but the market is still far from normal, balanced conditions,” said Lawrence Yun, NAR’s chief economist.
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