U.S. home resales
unexpectedly rose in October to the fastest pace in six months and
prices increased, helping stoke the economic recovery.
“Things are still booming, booming, booming,” said Marc
McGee, general manager of Pardoe Real Estate in Washington. Sales
at his office in Chevy Chase, Maryland, are up 30 percent from the
same time last year, he said.
Existing-home sales jumped 6.1 percent to a 5.77 million-unit
annual pace, the third-highest on record, from 5.44 million in
September, the National Association of Realtors said. The median
home price rose to $159,600, a 9.8 percent increase from October
2001 for the biggest year-over-year gain since July 1987.
Rising home prices give consumers confidence to spend on
furniture, appliances and home electronics because for most people
a house is their single biggest investment. In addition to
spurring sales, the lowest interest rates in three decades are
prompting consumers to refinance mortgages and inject $34 billion
into the economy this quarter, based on Freddie Mac statistics.
October’s median home price rose 1.1 percent from September’s
$157,900. Sales rose fastest in the Northeast, up 7.9 percent, and
slowest in the Midwest with a 4.1 percent rise.
Bloomberg News
