Home Resales Set Record; New Home Sales Remain Strong

Sales of existing homes soared to a new record in September, while sales of new homes dipped slightly from its strong pace, according to separate reports released Monday.

Strong home sales likely mean more business for flatbed trucking companies that haul building materials. Also dry van freight could see an increase in demand for the delivery of household appliances and furniture.

Home resales grew to a 6.69 million annual rate in September, a 3.6% rise from August's revised 6.46 million annual pace, the National Association of Realtors said. Analysts polled by Reuters forecast a sales pace of 6.28 million homes.

Home resales account for 85% and new home sales account for the rest.

The Commerce Department said that a total of 1.145 million new homes were sold at an annual pace last month, down 0.2% from a revised 1.147 million in August.

Economists had expected September new home sales to fall 2.2% to a 1.125 million annual rate, Bloomberg reported.

New home sales will reach a record 1.065 million this year before slowing to 994,000 in 2004, the second-most ever, according to revised projections last week from the National Association of Home Builders.

By region, sales surged 26% in the Northeast to an annual pace of 97,000 last month, the most since January 1997. Sales rose 12.4% in the West to an annual rate of 335,000. Sales slumped 18% in the Midwest to 209,000 and fell 2.5% in the South to an annual rate of 504,000.

eanwhile, the National Association of Realtors said existing home sales climbed in all regions of the country.

It also said the inventory of homes on the market fell in September to 4.3 months' supply of homes available for sale at the current rate of sales, from 4.5 months in August.

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