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Existing home sales hit high
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February 25, 1999: 11:31 a.m. ET
Affordable housing, low mortgage rates push January sales to record level
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NEW YORK (CNNfn) - Affordable housing led to record numbers in January existing home sales, the National Association of Realtors said Thursday.
The association reported a seasonally adjusted annual sales rate of 5.07 million units in January, up a roof-raising 16 percent from the rate of 4.37 million units recorded a year ago, and beating analysts' expectations of 4.92 million units.
The January rate was up 0.8 percent from December's 5.03 million units to a record high seasonally adjusted annual sales rate.
NAR President Sharon A. Millet said the January figures are a sign that consumers are continuing to reap the benefits of a sound economy.
"Strong consumer confidence in the nation's economy and continued low mortgage interest rates generated the last several months of the residential market, helping many people buy for the first time and allowing others the opportunity to buy a larger home," Millet said. "Even a slight uptick in interest rates from a month ago failed to dampen the confidence of consumers."
Freddie Mac reported the national average commitment rate for 30-year conventional, fixed-rate mortgages was 6.79 percent in January. This was up slightly from 6.74 percent in December but down from 6.99 percent in January 1998.
The national median price for existing, single-family homes was $131,700, up 4.4 percent from $126,100 posted a year ago. The median is a midpoint, with half the homes selling for more and half for less.
James F. Smith, NAR chief economist, said sales activity across the regions was healthy, with only the Midwest sliding slightly.
"Sales activity in all the regions remains strong, indicating that consumers wanting to purchase homes have not been hindered by winter weather conditions," he said. "Overall, what we are seeing in the resale market is a carryover momentum of buyers from late in 1998. With the holidays behind us and spring just ahead, many 1998 lookers are now going through with their purchases. This is an indicator that consumers are comfortable with the low unemployment rate, low inflation and interest rates."
The Northeast posted the strongest month-to-month gain, up 5.8 percent to 720,000 units and 9 percent higher than a year ago.
The South's resales pace remained unchanged from December to January, posting a rate of 1.97 million units. This rate was up 14.5 percent from January 1998.
The West saw sales rise 1.8 percent to 1.1 million units between December and January. The rate was up 13.4 percent from January 1998.
And existing home sales in the Midwest reached 1.28 million units, a decrease from 1.5 percent from December. The rate was up 14.2 percent from the 1.12 million rate in January 1998. 
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