Resales Set New Records

Existing-home sales jumped 3.6% in September to a new monthly and quarterly record, according to the National Association of Realtors.The NAR reported that sales of previously owned homes rose from a seasonally adjusted annual rate of 6.46 million in August to 6.69 million in September. NAR chief economist David Lereah said the housing market is "red hot" and that he would not be surprised if October sales set a new record. The NAR report shows that house prices rose by 9.1% over the past 12 months and the inventory of unsold homes is at a lean 4.3-month supply. "This is healthy home price appreciation," Mr. Lereah said, considering that "robust demand" is outstripping supply. But it also poses risks in some local markets where prices may decline when demand falls off. "The housing sector should remain healthy for the next 12 months, and we are looking for very, very healthy numbers," Mr. Lereah said.