Although existing home sales in the United States
fell in November for the first time in three months, low mortgage rates kept the pace strong enough that
2002 will probably be the best ever for the industry.
Home re-sales declined 3.5 percent last month to an annual
pace of 5.56 million units from a revised 5.76 million-unit rate
in October, the National Association of Realtors said. The group
forecasts sales will reach 5.52 million for the year, beating the
previous record of 5.3 million sold in 2001.
Rhode Island's Market Has Changed. Developers, Builders, Investors and Sellers Must Change With It.
By Emilio DiSpirito IV License Partner | Engel & Völkers Oceanside Leader | The DiSpirito…
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The lowest mortgage rates in almost four decades are helping
keep housing affordable and spurring demand. Existing homes
account for 85 percent of the market and boost the economy by
stimulating spending on appliances and home furnishings. Lowe’s
Cos., the world’s No. 2 home-improvement retailer, last month
reported higher profits as sales surged.
“People are still spending, and they’re spending in a way
that will inspire a continuing flow of new purchases to equip and
beautify both the new homes and the old ones,” said Bill Cheney,
chief economist at John Hancock Financial Services Inc. in Boston,
before the report.
New home sales, which account for the remaining 15 percent of
the market, reached a record last month, the Commerce Department
reported Friday. Sales rose to a 1.069 million home annual rate,
beating the previous high of 1.053 million in September.
Resales were lower in three of four regions. They fell 5.9
percent in the Northeast to a 640,000-unit pace, 4.8 percent in
the South to a rate of 2.2 million units, and 3.9 percent in the
Midwest to 1.22 million units. Resales in the West held at a 1.5
million-unit rate.
Bloomberg News
