Resales Set Another Record

Sales of existing single-family homes reached yet another record high for the year in July, according to data released today by the National Association of Realtors.Resales rose 4% in July to a seasonally adjusted annual rate of 4.93 million units, up from 4.74 million in June. Year-over-year, existing single-family home sales are up almost 18% nationwide, while in selected markets, like Denver and Springfield, Mass., resales have jumped 50%. Meanwhile, the previous record high for resales was set in March when they ended the month at 4.89 million units. "The marketplace is characterized by virtually zero inflation, while unemployment and economic growth are good," said NAR president R. Layne Morrill. "Mortgage rates are low and consumer confidence is at an all-time high. This adds up to excellent home buying conditions." Currently, the NAR is forecasting 4.7 million existing home sales for 1998, which would be an 11.5% increase over last year's record of 4.22 million. Mr. Morrill said this year's heavy activity is being fueled, in part, by increasing numbers of "nontraditional" households entering the housing market, including immigrants, singles, and older people trading down, reflecting a shift that will continue in years to come. Regionally, resales were up 13.1% in the West during July, 3.3% in the Midwest, and 1.5% in the Northeast. The market remained unchanged in the South. The NAR's website address is http://www.realtor.com.