Home sales on the rise in December

37,734 new and resale home transactions closed escrow in California during December 2011, up 4% from 36,215 transactions one year ago. December is the fifth consecutive month in which home sales volume surpassed corresponding months in 2010, which could indicate the beginning of a larger trend.

Home sales volume was relatively flat from month to month in late 2011, indicating a possible return to stability after the decline from mid-2010 to mid- 2011. [For more extensive history and analysis of monthly and annual home sales in California, see the first tuesday Market Chart, Home Sales Volume and Price Peaks.]

A total of 413,479 homes were sold statewide in 2011, a drop of 2% from 421,634 in 2010.  first tuesday anticipates a further drop, to 407,000 annual home sales in 2012 before yearly sales volume begins to fully bottom in 2013, with a likely increase in the last half of 2013. Price movement, however, will lag behind any increase in sales volume by 12 to 18 months.