Posted by DellaCa on 5/24/05 2:07pm
Msg #40076
Intresting read
WASHINGTON (Dow Jones) -- Sales of existing homes in the U.S. increased during April, the National Association of Realtors said Tuesday in another report that indicated housing sector strength.
Home resales rose to a record 7.18 million annual rate last month, a 4.5% advance from March's revised 6.87 million annual pace. March sales were originally seen at a rate of 6.89 million.
NAR economist David Lereah said, "a new record is a bit unexpected, but so is the performance of mortgage interest rates, which have been lower than forecast. When we look at recent job gains, we see all the positive factors coming together to coincide with a powerful demographic demand for housing."
The level of resales in April was above Wall Street expectations. Analysts predicted a 6.90 million rate of sales of previously owned homes.
The 4.5% sales increase followed a government report a week ago showing housing starts climbed 11.0% in April to a seasonally adjusted 2.038 million annual rate. Analysts cited solid sector fundamentals, including relatively low mortgage rates.
The average 30-year rate was 5.86% last month, down from 5.93% in March, according to Freddie Mac (FRE).
The inventory of homes on the market rose to 4.2 months in April, compared with March's unrevised 4.0 months, NAR said.
The median home price increased to $206,000, compared with a revised $193,000 in March.
Existing home sales among four regions in the U.S. were mixed.
Demand was up 4.3% in the Northeast, up 5.8% in the Midwest, up 7.0% in the South and flat in the West.
-By Jeff Bater, Dow Jones Newswires; 202-862-6616; [e-mail address]
Dow Jones Newswires
05-24-05 1019ET
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