Surprise! Home sales are up.

Today the National Association of Realtors reported that December existing-home sales were up 6.5% from November. What?? You mean, if interest rates come way down and prices come down, people will buy homes? Yup. Just wait until January's stats come out. We Realtors have been busy as heck this month! The news media will be all over it, calling the "housing bottom" (again).

If you are one of the many homebuyers on the proverbial fence, do not fear. The train has not left the station without you. Countering the positives I mentioned above is rising unemployment and falling personal net worth. So we just may move sideways for a bit longer, giving you ample opportunity to "get in." Hopefully, the incoming Obama administration will notice that incentives make people interested in buying homes and give a tax credit to anyone who buys an existing home (in addition to the $7500 credit available currently for first time buyers). Notice I exclude new construction homes from this idea, because that last thing we need is more of that right now. We can hope, right?

Those who have spoken to me recently know I think calling housing bottoms is a pointless activity. But we do need to be prepared for the bounce that will come. That will be the topic of my next posting.

Stay warm.