Surprise rise in home sales
Created: Jan 27, 2009 10:00 AM
WASHINGTON (AP) — Sales of existing homes posted an unexpected increase last month, as sales of bargain-basement foreclosures in California and Florida boomed, closing out the worst year for the US real estate market in more than a decade.
Analysts, however, cautioned that prices are likely to keep falling through 2009, and said the outlook for home sales is highly uncertain, despite a boost from low mortgage rates.
"I don't think we're close to a bottom yet," said Michelle Meyer, a Barclays Capital economist who sees nationwide prices falling another 15 percent this year. "We're still very far away from a normal housing market."
Sales of existing homes rose 6.5 percent to an annual rate of 4.74 million in December.