Resales Dip, but Still Set Record

Sales of existing single-family homes slipped 3.3% in December, but the 12-month total for 2004 still beat the previous year's sales record by 9.4%.The National Association of Realtors reported that resales fell from a seasonally adjusted annual rate of 6.92 million in November to 6.69 million in December. However, sales of previously owned homes totaled 6.68 million for all of 2004, up from 6.1 million in 2003. NAR chief economist David Lereah noted that median home prices rose 8.3% last year (the highest rate since 1980) and the inventory of unsold homes fell to a 3.9-month supply -- the lowest ever. "Going into 2005, we have a lot of momentum," Mr. Lereah told reporters. Mortgages rate are low and sales should tail off a bit, which should take some pressure off inventories and increase the number of homes for sale, he said. The NAR economist is forecasting that resales will total 6.48 million in 2005, which would be the second-best year ever. "So we look forward to continued healthy housing activity as we enter 2005," he said. The NAR can be found online at http://www.realtor.org.