Existing-Home Sales Climb
As Inventories Continue to Fall
Consumer Confidence Improves Markedly
By JEFF BATER
December 28, 2006
WASHINGTON -- Existing-home sales climbed a second straight time and inventories fell during November in another sign the housing market might be stabilizing.
Meanwhile, U.S. consumer confidence improved smartly in December, lifting to its highest level since April, according to a report Thursday by research group the Conference Board.
Home resales rose to a 6.28 million annual rate, a 0.6% increase from October's unrevised 6.24 million annual pace, the National Association of Realtors said Thursday. The median home price was $218,000 in November, down from a revised $219,000 in October and lower than $225,000 in November 2005.
NAR chief economist David Lereah said the twin increase in sales was the first since demand rose in March and in April 2005.
"It appears existing home sales hit bottom in September," Mr. Lereah said. "Price drop is necessary to stir sales. It is working. Sales are up. It appears we hit bottom."
The housing sector is in a slump that has held down economic growth. But a sign the market might be stabilizing emerged Wednesday as the government reported new-home sales rose more than expected in November and inventories fell; analysts, however, cautioned the supply of homes remained high and it was too early to tell whether a sector bottom had been reached. Home construction last month also climbed -- yet building permits kept dropping. (See related article1.)
The home resales level last month was above Wall Street expectations of a 6.18 million sales rate for previously owned real estate.
The average 30-year mortgage rate was 6.24% in November, down from 6.36% in October, according to Freddie Mac. By the end of November, the inventory of homes on the market fell to 7.3 months from an unrevised 7.4 months at the end of October, NAR said. Regionally, existing-home sales were mixed. Sales rose 6.0% in the Northeast and 0.8% in the West but were flat in the Midwest and fell 1.6% in the South.
As Inventories Continue to Fall
Consumer Confidence Improves Markedly
By JEFF BATER
December 28, 2006
WASHINGTON -- Existing-home sales climbed a second straight time and inventories fell during November in another sign the housing market might be stabilizing.
Meanwhile, U.S. consumer confidence improved smartly in December, lifting to its highest level since April, according to a report Thursday by research group the Conference Board.
Home resales rose to a 6.28 million annual rate, a 0.6% increase from October's unrevised 6.24 million annual pace, the National Association of Realtors said Thursday. The median home price was $218,000 in November, down from a revised $219,000 in October and lower than $225,000 in November 2005.
NAR chief economist David Lereah said the twin increase in sales was the first since demand rose in March and in April 2005.
"It appears existing home sales hit bottom in September," Mr. Lereah said. "Price drop is necessary to stir sales. It is working. Sales are up. It appears we hit bottom."
The housing sector is in a slump that has held down economic growth. But a sign the market might be stabilizing emerged Wednesday as the government reported new-home sales rose more than expected in November and inventories fell; analysts, however, cautioned the supply of homes remained high and it was too early to tell whether a sector bottom had been reached. Home construction last month also climbed -- yet building permits kept dropping. (See related article1.)
The home resales level last month was above Wall Street expectations of a 6.18 million sales rate for previously owned real estate.
The average 30-year mortgage rate was 6.24% in November, down from 6.36% in October, according to Freddie Mac. By the end of November, the inventory of homes on the market fell to 7.3 months from an unrevised 7.4 months at the end of October, NAR said. Regionally, existing-home sales were mixed. Sales rose 6.0% in the Northeast and 0.8% in the West but were flat in the Midwest and fell 1.6% in the South.
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