Home Sales Increased in December 2008 - Surprisingly

Despite expectations to the contrary, homes sales for existing homes actually increased during the month of December. Foreclosure properties had a lot to do with this, as rock-bottom prices encouraged reluctant home buyers to take the plunge.

Home sales went up by 6.5 percent in December of 2008, with around 4.74 million sales nationwide. In November, there were approximately 4.45 million sales in the U.S. These numbers were reported by the National Association of Realtors.

As prices drop, and more and more bargain hunters enter the market, we will slowly but surely reduce the surplus of homes that are currently for sale in the U.S., and this is a good thing.

But despite the unexpected increase in home sales for December, housing prices are expected to continue falling through most (or all) of 2009. At least, this seems to be the general consensus among most economists. The average sales price in the U.S. right now is $175,400, as compared to this time last year when the average was $207,000.

How far will home prices fall? When will we see the bottom of this market? These are difficult questions to answer, especially with a new administration taking charge. But most economists feel that we've yet to hit the bottom of the market. We will certainly keep you posted on these and other developments related to home buying.