Summary Box: Home sales rose in 2009 as prices fell, but risks loom when federal aid ends

Summary Box: Home sales up in ‘09 as prices fell

WHAT HAPPENED?: Propelled by government support, sales of previously occupied homes rose 5 percent in 2009, the first annual increase in four years. December’s sales, though, fell 16.7 percent from November, after a tax credit caused many buyers to complete sales earlier in the year.

WHAT DOES IT MEAN?: The government provided most of the fuel to the housing market last year, through spending to lower mortgage rates and prop up demand. As a result, sales surged in the second half of 2009, and prices stabilized.

WHAT’S NEXT: The Federal Reserve is scheduled to end its $1.25 trillion program to buy mortgage-backed securities on March 31. Mortgage rates are expected to rise after that. And a homebuyer tax credit is scheduled to end after April. If those supports aren’t extended, the housing market might have trouble standing on its own.