Existing Home Sales Surge 6.9% in December

ales of previously owned homes increase 6.9% in December to a 6.47 million annual pace, concluding the best year on record, the National Association of Realtors said Monday.

The rise brought total sales in 2003 to a record 6.1 million homes, shattering the previous record of 5.57 million a year earlier. And the group forecasted that sales in 2004 would be the second highest ever, fueled by an improving economy, Bloomberg reported.

When a home is sold, trucks are often needed to ship household appliances and furniture. Existing homes account for 85% of the residential real estate market and new homes the remainder.

The report found sales were higher in all four regions. They rose 9.4% in the Midwest to a 1.39 million-unit pace, 7.9% in the West to a rate of 1.77 million units, 5.3% in the South to 2.58 million units and 2.9% in the Northeast to 720,000.

The supply of homes available for sale, another gauge of housing demand, fell to 4.3 months' worth in December from 4.9 months' worth the previous month.

NAR also said that the median sales price rose 7.5% in 2003, the biggest rise since 1980.

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