Page 7 - ATD23Jan2016

U.S. NEWS A7
Saturday 23 January 2016

US Financial Front:

Home purchases rebound; 2015 had most sales in 9 years

fewer options and causing homes in short supply, more part from the Consumer Fi-
prices to rise. would-be buyers are stuck nancial Protection Bureau’s
The number of listings on renting. The share of hom- introduction of guidelines
the market fell 3.8 percent eowners has slipped to 63.7 in October for informing
from a year ago. Many percent from a high of 69.2 homebuyers about inter-
current homeowners are percent in 2004. est rates and fees for their
unable to sell their proper- Demand has continued mortgages.
ties for enough of a profit even though sales dipped Once lenders and buyers
to afford another home, to an annual rate of 4.76 sorted through the chang-
causing them to stay on million in November. That es to the paperwork, sales
the sidelines. With available decline resulted in large growth resumed. q

An existing home for sale is shown in Roswell, Ga. The National
Association of Realtors reported on December sales of existing
homes, on Friday, Jan. 22, 2016.

(AP Photo/John Bazemore)

JOSH BOAK 5.26 million homes in 2015,
AP Economics Writer a 6.5 percent increase over
WASHINGTON (AP) — U.S. 2014. The median sales
home sales rebounded in price rose 6.8 percent to
December after new regu- $222,400. The Realtors fore-
lations had delayed the cast that sales will stay flat
completion of purchases in in 2016 and that the medi-
November. And total sales an price will rise more than
in 2015 were the most in 4 percent. A price increase
nine years. that big would compound
The National Association a problem for many would-
of Realtors said Friday that be buyers: A rising propor-
sales of existing homes tion of homes are unafford-
climbed 14.7 percent last able. Home values rose last
month to a seasonally ad- year at more than twice
justed annual rate of 5.46 the pace of pay.
million. Sales had previously Despite greater demand,
plummeted as the industry the housing market contin-
adapted to new mortgage ues to recover slowly from
disclosure rules — a tempo- the bursting of the housing
rary downturn before de- bubble more than eight
layed sales were finalized years ago. Sales remain
in December. well below their peak of
“This is a great way to cap 7.08 million in 2005, when
off 2015,” said Jennifer Lee, adjustable-rate mortgages
a senior economist at BMO with no money down and
Capital Markets. other risky loans fueled a
Last month’s rebound buying frenzy that eventu-
concluded a year that ally fizzled and triggered
produced the highest an- the worst downturn since
nual sales total since 2006. the Great Depression.
Steady job growth and low More traditional buyers
mortgages drew more buy- returned to the market
ers into the market, caus- last year as cash investors
ing both sales and prices to pulled back. But the num-
climb. ber of listings shrank, giving
Americans bought roughly those shopping for a home