Home sales expected to cool after big year

cools downBy Eric Morath | The Wall Street Journal

Sales of previously owned homes finished 2013 at their highest level in seven years, but a slowdown in recent months suggests the market is cooling after two years of strong gains.

Sales rose 1% in December to a seasonally adjusted annual rate of 4.87 million, the National Association of Realtors said Thursday. But that was the first increase since July and the second-weakest month of the year, behind November.

The trade group said 5.09 million existing homes were sold throughout 2013—up 9% from 2012 and the highest level of sales since 2006.

Though many economists expect the housing market’s improvement to continue, last year’s growth rate is unlikely to be maintained.

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