While 2012 proved the strongest year for real estate since 2009, new home sales slipped in December by over 7 percent from November 2012 sales, according to a press release issued by the U.S. Census Bureau.
The shortfall surprised industry analysts, who predicted stronger sales for the month. On the plus side, new home prices increased 1.3 percent in December, and existing home sales likewise increased by 12.8 percent from 2011, though this number was also lower than originally predicted. Economists also note that while mortgage interest rates have increased slightly over the past few weeks, the numbers are s
till quite low, which should provide some encouragement to wary home buyers and investors.
The rebound of the real estate market in 2012 was long in coming, as the nation recovered from a recession resulting in massive unemployment and devastating home foreclosures. Many who had the money to buy a home decided to postpone their investment, hoping to purchase homes at lower prices after the recession. Others waited until they had more economic and career stability before taking the plunge, as many feared making such a major purchase in an uncertain job market, particularly since there was no guarantee that they would be able to sell their homes if they needed to relocate to find work.
As economic conditions improved in 2012, however, purchasing a home became a more feasible and less risky proposition, providing even those of modest means with the opportunity to become homeowners.
News reports note that home sales varied significantly by region. For example, southern California saw a 14 percent increase in home sales, though buyers were looking for bargains, bringing down home sale prices. Bargain shoppers might want to pay attention to rising interest rates, as 30-year fixed rates are now at 3.98 percent, up from 3.88 percent a week ago. Still, the rates are significantly lower than in previous years, creating favorable conditions for buying a new home or investing in real estate.
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