Existing Home Sales See Slight Drop

WASHINGTON D.C. - Existing home sales were essentially flat in January but remained at historically high levels, according to a report released Friday by the National Association of Realtors.

Total existing home sales, including single-family townhomes, condominiums and co-ops, slipped 0.1 percent in January to a seasonally adjusted annual rate of 6.8 million units from a level of 6.81 million in December. Last month's sales activity was 13.7 percent above the 5.98 million-unit pace in January 2004.

David Lereah, NAR's chief economist, said January home sales were buoyed by the condo sector.

?EUR??,,????'??A slight decline in single-family home sales was offset by a record monthly level of condo sales, which just came off its ninth consecutive record year,?EUR??,,????'?? he said.

The national median existing-home price for all housing types was $189,000 in January, up 10.5 percent from January 2004 when the median price was $171,000. The median is a typical market price where half of the homes sold for more and half sold for less.

?EUR??,,????'??The demand for homes remains in record territory, but the supply of homes on the market set an all-time low in January,?EUR??,,????'?? NAR President Al Mansell said. ?EUR??,,????'??The growth in home equity is adding to housing wealth and helping the overall economy, yet low mortgage interest rates are keeping homes within reach of buyers in most of the country.?EUR??,,????'??

Total housing inventory levels declined 5.8 percent at the end of January with 2.09 million existing homes available for sale, which represents a 3.7-month supply at the current sales pace - a record low.

The home resale pace in the West rose 0.6 percent to an annual rate of 1.59 million units in January and was 16.9 percent stronger than January 2004. The median existing home price in the West was $277,000, up 16.4 percent from the same month a year earlier.

In the Northeast, existing home sales declined 3.5 percent from December to a pace of 1.09 million units in January, but were 11.2 percent above the level in January 2004. The median existing home price in the Northeast was $231,000, up 9.5 percent from a year ago.

Homes in the Midwest were reselling at an annual rate of 1.47 million units in January, down 5.2 percent from December, but were 10.5 percent above January 2004. The median price in the Midwest was $151,000, up 8.6 percent from a year earlier.