U.S. Sept. existing home sales rise to 3rd highest ever -
[What is interesting is that in spite of that, inventory rose by .4% to a 4.4 month supply AT THE SEPT RATE - mish]
Monday, October 25, 2004 2:54:50 PM
afxpress.com
WASHINGTON (AFX) - Sales of U.S. existing homes increased 3.1 percent in September to the third highest rate ever despite the devastation of a series of hurricanes in the Southeast, the National Association of Realtors said Monday. Existing home sales increased to a seasonally adjusted annual rate of 6.75 million in September, ahead of the 6.52 million projected by economists surveyed by CBS MarketWatch. Sales in August were revised higher to 6.55 million from 6.54 million earlier. "Low mortgage rates have created a very favorable backdrop" to housing activity, said David Lereah, chief economist for the NAR. Since June, mortgage rates have dropped from 6.29 percent to 5.76 percent in September, despite three increases in the federal funds rate. "The Fed is still on task," Lereah said, but he doesn't expect mortgage rates to react as negatively to the Fed's rate hikes as they have in the past. Median sales prices rose 8.6 percent year-over-year to $186,600
The inventory of unsold homes on the market increased 0.4 percent to 2.45 million, a 4.4 month supply at the September sales rate. Sales rose in every region of the nation in September, except the South, where sales fell 0.9 percent. Lereah said he expects sales to pick up in the South in October as catch up to the activity lost to the storms
Next year, the NAR will release a new leading economic indicator of housing that tracks pending home sales based on contracts signed. The current existing home sales data are recorded at closing |
