Existing Home Sales Reach Second Highest Pace on Record

CHICAGO - Total existing-home sales, which include single-family, apartment condominium, and co-operative sales, reached the second highest pace record in the fourth quarter of 2004, according to the National Association of Realtors. In addition, 40 states and the District of Columbia showed increases in sales activity over the same period in 2003.

NAR's latest report on total existing-home sales shows that nationwide, the seasonally adjusted annual rate was 7.76 million units in the fourth quarter, up 7.3 percent from the 7.24 million-unit level in the fourth quarter of 2003. The record was a pace of 7.8 million units in the second quarter of 2004.

The strongest increase was in Arizona, where the fourth-quarter resale pace rose 28.8 percent compared with the fourth quarter of 2003. North Carolina existing-home sales rose 25.4 percent from a year earlier, while Georgia posted the third highest increase, up 21.7 percent. Eighteen other states also recorded double-digit sales gains from a year ago. Nine states posted declines; complete data was not available for one state.

?EUR??,,????'??Even with the variations, the vast majority of states set records for home sales in 2004 and most of the rest had their second-best year,?EUR??,,????'?? David Lereah, NAR's chief economist, said. ?EUR??,,????'??In some cases, fourth quarter sales were down from a year-ago surge, but the sales levels in and of themselves are historically strong in every state.?EUR??,,????'??

NAR data shows 45 states and the District of Columbia set home sales records last year, while three states had their second-best showing; there was insufficient data for two states.

?EUR??,,????'??The reason we keep setting annual records for home sales is that we continue to experience the right combination of factors necessary for strong activity, led by low interest rates,?EUR??,,????'?? NAR President Al Mansell said.

Regionally, the South reported the strongest annual increase-up 8.7 percent to a resale pace of 3.22 million units in the fourth quarter in comparison with the same quarter in 2003. After North Carolina and Georgia, the strongest increase in the South was in Arkansas, up 16.5 percent from a year earlier; Alabama existing-home sales jumped 15.9 percent in the same time frame, while South Carolina rose 15.4 percent. Seven other Southern states also posted double-digit sales increases.

In the West, the fourth quarter existing-home sales rate of 2.11 million units, rose eight percent from the fourth quarter of 2003. After Arizona, the next highest increase in the region was in New Mexico, where total existing-home sales rose 21 percent compared with a year earlier; Washington sales activity rose 19 percent in the same time frame, while Wyoming increased 16.3 percent. Oregon and Alaska also posted double-digit sales gains.

In the Midwest, total existing-home sales increased five percent to a 1.51 million-unit annual sales rate compared with the same period in 2003. Iowa led the region, up 18.5 percent from the fourth quarter a year earlier. Missouri ranked second, posting a 14.1 percent increase, followed by North Dakota, with a gain of 12.5 percent.

The Northeast recorded an existing-home sales pace of 915,000 units in the fourth quarter of 2003, up 4.3 percent from a year earlier. Massachusetts experienced the strongest increase in the region with sales activity 14.8 percent above a year ago; Maine was up 9.2 percent while Rhode Island existing-home sales increased 7.7 percent.