Home sales in the United States increased for the seventh consecutive month in January, according to a report from Re/Max.
The firm's National Housing Report showed that in January, residential home sales dropped 19.3 percent compared to December. However, when comparing year-over-year figures, sales were up by 3.4 percent. Inventory levels declined for the 19th consecutive month, which the organization noted was likely due to foreclosure numbers declining. In addition, the median home price declined to $129,306. This was 3.4 percent lower than December's figure. However, when compared year-over-year, the figure was only 0.8 percent lower.
"This positive start to the year will hopefully set the tone for a continuing housing recovery that's drawing home buyers with low interest rates and low prices," said Margaret Kelly, chief executive officer of Re/Max. "If sales continue ahead of last year's pace and inventory does not increase significantly, we could start to see increasing home prices this year."
A recent report from the National Association of Home Builders noted that due to the current home price situation, nearly 76 percent of homes sold during the fourth quarter were affordable for a family with the U.S. median income of $64,200.