According to the National Association of Realtors, there was a 6.6% increase in home sales last month.

CNN Money reports:

“While focused in part on quarterly earnings and a report showing a drop in consumer confidence, investors also found themselves basking Tuesday in the afterglow of surprisingly positive data on the U.S. housing market.

“When was the last time we’ve had good news on the housing market? You really can cut prices to the point where volume will move,” said Owen Fitzpatrick, head of U.S. equity group at Deutsche Bank, of the unexpected December increase in sales of existing homes reported Monday.”

Will these numbers translate into an equity recovery? Don’t count on it.

Unfortunately, the increase in home sales is due to rock-bottom pricing on foreclosure properties. A neighborhood with more than one foreclosure can be severely impacted with dropping home values and the possibility of a HELOC freeze.

See Also:

Evaluating Your HELOC Risk

Ways to Revive Your Home Equity Line of Credit

Tags | Heloc, heloc freeze, home equity line of credit