Total State Existing-Home Sales Hold In Record Territory, NAR Reports 8/13/2003
From: Walter Molony, 202-383-1177, wmolony@realtors.org, or Lucien Salvant, 202-383-1176, lsalvant@realtors.org, both of the National Association of Realtors WASHINGTON, Aug. 13 -- Low mortgage interest rates and strong market fundamentals fueled total existing-home sales in the second quarter to the second-strongest pace on record, with 36 states and the District of Columbia posting increases from a year ago, according to the National Association of Realtors(r). The NAR survey showed that nationwide, the seasonally adjusted annual rate (note) of existing single-family, apartment condominium and co-operative home sales totaled 6.69 million units in the second quarter, up 5.8 percent from the 6.32 million-unit pace in the second quarter of 2002. This was the second highest annual rate since NAR started tracking the total state resale series in 1981, and is only slightly below the record pace of 6.70 million units in the first quarter of this year. Total sales rose by double-digit rates in 17 states and the District of Columbia in the second quarter compared to the same quarter in 2002. Twelve states reported generally small declines in the resale rate, while complete data for two states was not available. David Lereah, NAR's chief economist, said home sales essentially held even. "Total home sales during the first half of this year were at a record level, driven by historically low mortgage interest rates and a growing number of households," he said. According to Freddie Mac, the national average commitment rate for a 30-year conventional fixed-rate mortgage was a record low 5.51 percent in the second quarter, down from 5.84 percent in the first quarter; it was 6.82 percent in the second quarter of 2002. The Freddie Mac mortgage interest rate series began in 1971. NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, Fla., said solid market fundamentals will prevail. "The recent rise in mortgage interest rates is projected to have a slight braking effect on home sales, but we're coasting for a record in 2003," she said. "Interest rates remain very affordable, and the economy is expected to improve during the second half of the year--that should boost labor prospects as well as consumer confidence, factors that also bode well for housing," Whatley said. The strongest year-to-year increase was in Nevada, where the second quarter resale pace rose 24.6 percent over the second quarter of 2002. Next came Alaska, which rose 20.9 percent from a year ago. Missouri posted the third highest increase, up 17.5 percent from last year's second quarter rate. Regionally, the Midwest experienced the highest increase with a 1.40 million-unit annual sales pace, up 8.3 percent from last year's second quarter rate. After Missouri, Nebraska had the strongest increase in the region with a gain of 19.9 percent in resale activity over the same period in 2002, followed by Kansas with a gain of 14.1 percent. Ohio and Minnesota also experienced double-digit gains. The South, with a resale rate of 2.68 million units, posted a 5.8 percent rise for the second quarter of 2003 over the same quarter a year ago. The strongest increase was in Tennessee, where the resale pace was 17.5 percent higher than the second quarter of 2002. Alabama was up 14.2 percent, South Carolina increased 10.9 percent, Arkansas rose 10.6 percent and the District of Columbia was up by 10.5 percent. In the West, sales activity in the second quarter was at a sales rate of 1.81 million units, up 5.6 percent from a year ago. After Nevada and Alaska, the next highest increase was in Idaho, where existing-home sales rose 17.0 percent. Hawaii resales were up 16.6 percent and Arizona rose 15.2 percent; Washington, Montana and New Mexico also posted double-digit increases. In the Northeast, the total existing-home sales pace of 802,000 units in the second quarter was 1.4 percent higher than a year ago. Leading the region was Pennsylvania, where existing-home sales rose 2.5 percent from the second quarter of 2002. "The Northeast was constricted by shortages of homes available for sale, which is why this region experienced the sharpest price increases in the country," Lereah said. The National Association of Realtors(r), "The Voice for Real Estate," is America's largest trade association, representing more than 900,000 members involved in all aspects of the residential and commercial real estate industries. ------ Note: The seasonally adjusted annual rate for a particular quarter represents what the total number of actual sales for a year would be if the relative sales pace for that quarter was maintained for four consecutive quarters. Total home sales include single family, townhomes, condominiums and co-operative housing. This differs from NAR's monthly series on existing-home sales, which is based only on single-family homes (detached and townhomes). NAR began tracking the state sales series in 1981. Seasonally adjusted rates are used in reporting quarterly data to factor out seasonal variations in resale activity. For example, sales volume normally is higher in the summer and relatively light in winter, primarily because of differences in the weather and household buying patterns. Quarterly sales rates have been revised going back to 1989 using updated modeling to seasonal adjustment factors; there are no changes to annual sales totals or price data. Tables of state resale rates, percent changes and some historic data are available at http://realtor.org/research - click on Existing Home Sales, then quarterly data. Information about NAR is available at http://realtor.org. This and other news releases are posted in the Web site's "News Media" section under NAR News Releases. Statistical data and surveys may be found at http://realtor.org/research. REALTOR(r) is a registered collective membership mark which may be used only by real estate professionals who are members of the NATIONAL ASSOCIATION OF REALTORS(r) and subscribe to its strict Code of Ethics. |