U.S. home sales up at end of dismal year, spurring hope

American home sales rose in December to the highest pace in nearly a year. The gain coincides with other signs that show the troubled housing market improved at the end of 2011. Still, sales remain depressed and ended the year well below healthy levels. The National Association of Realtors says home sales increased 5% last month to a seasonally adjusted annual rate of 4.61 million. For the year, home sales totaled only 4.26 million, up from 4.19 million the previous year. Since the housing bust four years ago, home sales have slumped under the weight of foreclosures, tighter credit and falling prices. The national increase on the year is about on par with what Baton Rouge area realtors have been reporting. The Greater Baton Rouge Association of Realtors says total sales in 2011 were 6,581, a 3% increase over the 6,386 sales in 2010. That’s still a 4.6% decrease from the 6,899 homes sold in 2009. Nonetheless, the later half of 2011 proved a complete reversal from the first half. At the end of May, the area had seen five straight monthly declines in sales, and year-to-date figures were off 16% compared to 2010. GBRAR Executive Vice President Herb Gomez says he expects an increase in 2012 similar to that seen in 2011 as the market slowly and steadily recovers.