Ahead of 2012, Home Sales Rise 4% in November

Home sales followed a rocky road in 2011, as concerns over credit ratings, mounting public debt, and the potential for a double-dip recession forced homebuyers to the sidelines. _MReport_ takes a look back at this year's home sales ├â┬ó├óÔÇÜ┬¼├óÔé¼┼ô and looks forward to figures in 2012.

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This week the ""National Association of Realtors"":http://www.realtor.org/ (NAR) reported home sales leaping forward 4 percent to crest at a seasonally adjusted annual rate of 4.42 million in November, up from 4.25 million in October and 12.2 percent above 3.94 million-unit figures recorded in November last year.

The numbers continue a forward-looking move from home sales that ticked up by 8.9 percent in October, according to NAR, even while real estate company RE/MAX said that home sales pulled forward by 9 percent over November.

Speaking at a conference in November, ""Lawrence Yun"":http://www.realtor.org/research/chief_economist_bio, chief

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economist with NAR, forecasted that home sales would continue to rise in 2012, along with interest rates for mortgage loans.

""There is a sizeable pent-up demand based on population growth, employment levels and a doubling-up phenomenon that can't continue indefinitely,"" he said in a statement. ""This demand could quickly stimulate the market when conditions improve.""

He said that new-home sales would likely reach 302,000 by the close of this year, but surge to 372,000 come 2012, with housing starts expected to arrive at 630,000, up from 583,000 this year.

NAR President ""Moe Veissi"":http://www.realtor.org/about_nar/fullbio_veissi said in a statement that housing affordability set new highs.

""With consumer price inflation rising by more than 3 percent this year, consumers are looking to lock-in steady payments by taking out long-term fixed-rate mortgages,"" he added. ""However, the problem remains that some financially qualified families who are willing to stay well within their means are being denied the opportunity to buy in today's market by the overly restrictive mortgage underwriting situation.""

Not all was rosy for home sales this year. The jump comes off the heels of a 2.3-percent decline from August, which NAR said fell likely as a result of a political standoff in the nation's Capitol. That followed a 0.7-percent downward drift over July from June as worries about a double-dip recession mounted across the country.