August Home Sales Hit Record, Future Expectations Lowered
Sales of existing single-family homes hit a new record in August, but sales are now slowing and will be lower than expected in the months ahead, according to the National Association of Realtors®, Washington. Existing-home sales rose 5.8 percent in August to a seasonally adjusted annual rate of 5.50 million units from an upwardly revised level of 5.20 million units in July. The month's sales activity remained 5.0 percent above the 5.24-million unit pace in August 2000.
David Lereah, NAR's chief economist, described the report as ironic. ``Like everything else, this bright spot in the American economy has been eclipsed by the events of September 11,'' he said. ``After setting a new record for existing-home sales in August, our internal tracking shows a downturn following the attack on America, and there will be some natural pullback from big ticket purchases in the months ahead given uncertainty over the future,'' he added.