|
Home sales raise the roof
|
 |
December 29, 1998: 11:37 a.m. ET
November 2.7 percent existing sales gain seen as 'exceptionally strong'
|
NEW YORK (CNNfn) - Existing home sales went through the roof in November month, thanks to the economy, consumer confidence, low mortgage rates, and some nice weather, the National Association of Realtors said Tuesday.
The seasonally adjusted annual rate of existing home sales rose 2.7 percent in November to 4.90 million units, just short of the record pace of 4.91 million units recorded by the association in July.
The "exceptionally strong" sales figures hammered earlier estimates of 1.3 percent. The home sale news came out the same day that U.S. consumer confidence was reported at a higher-than-expected level.
Last month's resale level was 2.7 percent above the 4.77 million unit rate recorded in October and 11.6 percent above the 4.39 million unit rate for November 1997.
"This has not been a roller coaster market," NAR President Sharon A. Millet said in a statement. "It has remained extraordinary, month to month. Throughout the fall, buyers were still flocking to the market, determining how much they could afford, and taking advantage of low interest rates."
The 30-year Treasury bond was down 4/32 for a yield of 5.155 percent.
According to Freddie Mac, the national average commitment rate for a 30-year conventional, fixed-rate mortgages was 6.87 percent in November, up marginally from 6.71 percent in October, but down from 7.21 percent in November 1997.
The national median existing-home price was $131,800 in November, up 6 percent from November 1997, when the median price was $124,300.
The association is projecting 4.78 million existing single-family home sales for 1998, which would represent a 13.5 percent increase over the record of 4.22 million sales posted last year. Next year, the association is predicting existing single-family home sales to total 4.48 million, falling 6.4 percent from this year's anticipated total.
Regionally, the South posted the strongest existing home sales, rising 5.9 percent. The Midwest saw sales climb 4.2 percent, while the Northeast was up 1.5 percent. The West - where the weather wasn't as favorable -- came up short, slipping 3.8 percent.
|
|
|
|
|
 |
|
