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Third Quarter Existing Home Sales Reach Second Highest Pace on Record

CHICAGO -- Total state existing-home sales activity in the third quarter was at the second-highest pace on record, with 36 states posting increases from a year ago, according to the National Association of Realtors.

The NAR survey showed that nationwide, the seasonally adjusted annual rate of existing single-family, apartment condominium, and co-operative home sales totaled 7.66 million units in the third quarter of this year--up 4.1 percent from a 7.36 million-unit pace in the third quarter of 2003. The record was a level of 7.80 million units in the second quarter of this year; NAR began tracking state home sales in 1981.

"The last six months is the strongest stretch of home sales ever recorded," David Lereah, NAR's chief economist, said. "Low mortgage interest rates are a big factor, but even more important is the fundamental demand from a growing number of households in an environment of job growth and economic improvement."

According to Freddie Mac, the national average commitment rate on a 30-year conventional fixed-rate mortgage was 5.89 percent in the third quarter, down from 6.13 percent in the second quarter; the rate was 6.01 percent in the third quarter of 2003.

NAR President Al Mansell, CEO of Coldwell Banker Residential Brokerage in Salt Lake City, says strong sales to first-time buyers are providing liquidity to the housing market.

"Four out of 10 home purchases are by first-time buyers, providing a ready market for sellers and making it easier for them to buy another home," Mansell said. "The positive market fundamentals mean we're in the midst of a housing expansion that will be driven by demographics going forward. Homeownership will continue to be the soundest investment most families will ever make."

The strongest year-to-year increase was in Arizona, where the third-quarter resale pace was 20.3 percent above the third quarter of 2003. Next came West Virginia, which rose 17.9 percent from a year ago. North Carolina posted the third strongest increase, up 17.5 percent from last year’s third quarter rate.

Regionally, the best performance was in the South, which recorded a sales rate of 3.16 million units in the third quarter, up 5.6 percent from a year ago. After West Virginia and North Carolina, the strongest increase in the region was in Tennessee where the resale pace was 15.5 percent higher than the third quarter of 2003. Georgia experienced a 12.3 percent gain, while Virginia was up 9.4 percent during the same time frame.

In the West, the resale rate of 2.11 million units rose 5.3 percent from the third quarter of 2003. After Arizona, the next highest increase was in Wyoming where total existing-home sales rose 13.7 percent from a year ago. Nevada experienced an 11.6 increase from the third quarter of 2003, while Oregon was up 11.5 percent and New Mexico rose 10.4 percent.

In the Northeast, the total existing-home sales pace of 905,000 units in the third quarter increased 3.9 percent from a year ago. Massachusetts’s sales activity rose 10.6 percent, Pennsylvania increased 7.6 percent and New Jersey was up 5.2 percent from a year ago.

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June 18, 2019, 9:02 pm PDT

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