Posted by Leonard Steinberg on February 22nd, 2012

Is unseasonable good weather fueling this strong market? Home resales rose to a 1-1/2-year high in January, pushing the supply of properties on the market to the lowest level in almost seven years in a hopeful sign for the housing sector.

The NAR said today existing home sales increased 4.3 percent to an annual rate of 4.57 million units last month, the fastest pace since May 2010. This is the latest indication the housing market may be fully deflated and rising. Even some economists attributed some of the rise to the warmer winter weather, but also said it signaled genuine improvement. The jobs market has improved. Sales at HOME DEPOT are up. Builders are digging again.

Sales were up across all four regions of the country, with the West recording the biggest gain — an 8.8 percent increase. Sales in New York are very strong this month, and if our theory is correct to-day’s glorious weather should boost Manhattan sales for the month of February for sure.