Resales Fall, but Record Looms

Sales of existing single-family homes fell 4.6% in November, but sales are still on track to post a new record for 2003.The National Association of Realtors reported that resales fell from a seasonally adjusted annual rate of 6.35 million in October to a 6.06 million rate in November. NAR chief economist David Lereah told reporters, "We are now on pace to sell almost 6.1 million existing homes in 2003, which will shatter the all-time record set in 2002 of 5.56 million." He said he expects the economy to gain momentum in 2004 and that sales of previously occupied homes will total 5.8 million -- which would be the second-best year ever. The NAR is forecasting that the 30-year mortgage rate will average 6.4% in 2004 and median house price appreciation will slow from 9% in 2003 to 4%-5% in 2004. 'There are no price bubbles popping," he said. "You are going to hear a little deflating of the balloon -- so to speak -- to manageable price appreciation numbers." The NAR can be found on the Internet at http://realtor.org.