The National Association of Realtors reported that previously-owned homes sold at an annual pace of 4.92 million homes, 9% higher than this time last year.
Home prices were up 12.3%, taking the median to $173,600. That marked the biggest percentage gain since January 2005.
The price rise is being driven by tight inventories, increased demand from buyers, and a drop in sales of distressed homes, such as those in foreclosure.
There were 1.74 million previously-owned homes on the market , equal to only about a four-month supply at current sales levels. It's the tightest inventory of homes on the market since 1999.
And distressed home sales made up only 23% of January sales, compared to 35% of sales a year ago.
Home construction has also been improving -- builders filed for the greatest number of building permits in more than four years in January.
Even if you're not trying to sell your home, the improvement is good news: It is an important driver of overall economic growth.
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|Overnight Avg Rate||Latest||Change||Last Week|
|30 yr fixed||4.01%||4.04%|
|15 yr fixed||3.11%||3.18%|
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|15 yr refi||3.11%||3.16%|
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|Inflation (CPI)||June 18|
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