Existing Homes Sales Hit Record in July

Sales of previously owned homes rose 5% in July to a record 6.12 million at an annual pace, the third increase in the last four months, the National Association of Realtors reported Monday.

The record was fueled by interest rates that stayed close to historic lows, the report said. The group forecasts sales will probably reach 5.73 million for the year, surpassing the record 5.57 million sold in 2002.

hen a home is sold, trucks are often needed to ship household appliances and furniture.

Previously owned homes account for 85% of the residential real estate market and new homes the remainder.

Resales rose 7.7% in the Northeast to a 700,000-unit pace, 3.9% in the Midwest to a rate of 1.34 million units, 7% in the South to a 2.45 million unit pace and 1.9% in the West to a 1.63 million-unit rate.

Economists had expected home resales to rise to a 5.9 million-unit annual pace from June's previously reported 5.83 million rate, Bloomberg said.

The supply of homes available for sale, another gauge of housing demand, fell to 4.7 months' worth in July from 5.1 months' worth the previous month.

Existing home sales are typically counted when transactions close, meaning the July statistics likely reflected buying decisions made a month or two earlier. New home sales are counted when buyers sign contracts with builders.

he Commerce Department is scheduled to report new home sales figures on Tuesday morning.

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