Nation's Building News Online

Home Resales Surprisingly Strong in September

At a time when housing activity was expected to begin winding down some, the industry continues to display surprising signs of strength, such as last Monday’s report by the National Association of Realtors® of a 3.6% increase in September in existing home sales to a seasonally adjusted annual rate of 6.69 million units.

This put the sales pace 20.8% ahead of the 5.54-million-unit rate posted for the same time a year earlier.

“We knew the September pace for existing-home sales was going to be a big number,” said NAR Chief Economist David Lereah, “but after setting records in July and August, we thought the pace might start to slow.”

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The latest sales figures, he said, underscore “the powerful fundamentals that are driving the economy — household growth, low interest rates and an improving economy.”

Thirty-year, conventional, fixed-rate mortgages averaged 6.15% in September, down from 6.26% in August, according to Freddie Mac.

Existing home sales should now set a record in 2003, predicted NAR President Cathy Whatley, totaling roughly 5.9 million units, which would surpass last year’s sales record by about 6%.

“Favorable market conditions will continue to drive home sales in 2004, but it will be hard to match this year’s unprecedented level,” she said.

Resales in September rose 7% in the Northeast, 5.1% in the West, 4.4% in the Midwest and 0.8% in the South.
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