Existing sales rise, prices drop

Increased relocation activity was able to provide a boost to existing home sales in September, said a new report.

The National Association of Realtors reported that existing home sales rose 10 percent in September to a seasonally adjusted annual rate of 4.53 million. That was up from a downwardly revised rate of 4.12 million in August, but still 19.1 percent below figures from last September, when existing home sales were at a pace of 5.60 million units.

Additionally, the national median home price was at $171,700 last month - 2.4 percent below a year ago - and more families were moving into distressed properties, which represented a 35 percent share of the home sales market, up from 34 percent in August. Combined with historic low mortgage rates, the report added up to a climate of improved affordability for homebuying, helping relocating families take a chunk out of the national housing inventory - which fell to a 10.7-month supply.

"The savings today's buyers are receiving are not a one-time benefit. Buyers with fixed-rate mortgages will save money every year they are living in their home," said NAR president Vicki Cox Golder.

A separate report from Standard & Poor's reinforced the onset of even lower home prices. The S&P/Case-Shiller Index reported that prices declined 0.2 percent in 20 major metropolitan areas in August.
 

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