Surprise: Existing Home Sales Rise

Existing single-family home sales jumped 6.2% in September to its highest level in more than a year, according to figures released by the National Association of Realtors. NAR reported that sales of previously owned homes rose on a seasonally adjusted annual rate to 4.62 million units in September compared to 4.35 million the month before. It was the best showing since August 2007 when the rate averaged 4.79 million units. Single-family sales have been bouncing between 4.25 million and 4.5 million units all year. NAR chief economist Lawrence Yun considers September's breakout to be encouraging because traditional buyers are returning to the market. "The current market is not being dominated by speculative investors," he said. "Rather, 80% of current buyers are purchasing primary residences, which is a bit higher than historic norms." Despite the jump, there is a 9.4 month supply of homes on the market. Foreclosures and short sales continue to make up 35% to 40% of sale transactions and continue to put downward pressure on prices. The median sales price of single-family homes was $190,600 in September, down 8.6% from the same month last year.