Resales Slip as Prices Jump

Sales of existing single-family homes fell 3.5% in November -- the sixth-highest monthly rate ever -- while price appreciation nearly hit 10% last month.The National Association of Realtors reported that single-family resales fell from 5.76 million in October to a seasonally adjusted annual rate of 5.56 million in November. "For the last three months [September, October, and November] existing-home sales have averaged 5.59 million units -- an extraordinarily high level of activity," NAR chief economist David Lereah told reporters. Looking ahead, the NAR economist said he does not expect 30-year mortgage rates to move above 6.6% in 2003, but he does expect the housing market to cool somewhat while remaining relatively strong. "There should be some cooling of the housing markets entering 2003," Mr. Lereah said. "Price appreciation should cool as well." The median existing-home price was $161,400 in November, up 9.7% from that of a year earlier. The current record is 10.6%, set in July 1987. With one month to go, the NAR economist estimates that median home price appreciation will come in at 7% for calendar year 2002.