Home Sales Pick Up Pace as Prices Decrease Slightly
Sales of existing homes rose 1.1% in November, the biggest increase since August, a real estate trade group reported today.
The National Assn. of Realtors said existing single-family homes were sold at a seasonally adjusted annual rate of 3.71 million units in November.
Sales had shown no improvement in October after having fallen 1.1% in September.
The price of an existing home edged down slightly to $87,900 in November, compared to an October median price of $88,100.
Analysts said the strength in November reflected the fact that the generation born after World War II was moving into its peak period of home purchases.
John Tuccillo, chief economist of the realtor association, said he is expecting sales to slacken somewhat in 1989, dropping by about 4.2% from an expected 3.53 million sales this year, with the 1989 pace depressed somewhat by higher mortgage rates.