According to the WSJ, while the real estate market is not yet close to recovery, low interest rates which are slowly inching up and bargain prices fuel 12.3% gain for existing homes in December 2010. Buyers are locking in interest rates and closing on existing homes. Sales of distressed homes such as foreclosures and short sales rose to a 36% market share which spurred more discounting, with prices falling 1% in December.
According to Lawrence Yun, NAR chief economist, "The market is getting much closer to an adequate, sustainable level. The recovery will likely continue as job growth gains momentum and rising rents encourage more renters into ownership, while exceptional affordability conditions remain."
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