December home sales indicate positive trend

The National Association of Realtors reported existing home sales in December increased 5 percent from November to an annual rate of 4.61 million, marking the third consecutive month of growth in sales.

Lawrence Yun, chief economist for NAR, said the increased sales report could be an indication of an up and coming housing recovery.

"The pattern of home sales in recent months demonstrates a market in recovery," Yun said. "Record low mortgage interest rates, job growth and bargain home prices are giving more consumers the confidence they need to enter the market."

The Illinois Association of Realtors reported the number of homes sold in the state in December was 8,828, up 14 percent from 7,746 in December 2010. The median price in December was $125,500, down 10.4 percent from $140,000 the year before.

"While median home prices continue to be a concern in much of the state, the continued trend of month-over-month increases in the number of home sales is encouraging news," said Loretta Alonzo, president of the IAR. "Buyers are finding deals that are simply too good to pass up, and that coupled with stronger consumer optimism is making this an excellent way to start 2012."

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