Lower Interest Rates Help Home Resales Rise 2.7%

Resales of single-family houses increased 2.7% in the third quarter, spurred by lower interest rates and recovering markets in the South and Midwest, the National Assn. of Realtors reported Monday.

In California, 501,600 existing single-family homes closed escrow during the third quarter, down 4.2% from the previous quarter and 14.6% below the third quarter of 1988, according to the California Assn. of Realtors.

Statewide, the median price of a home slipped 0.4% from $201,729 in the second quarter to $200,933 in the third quarter. Even with the decline, the third-quarter median price was 14.6% higher than the like period a year ago, when the median price was $175,400.

Meanwhile, the national median price for a house rose 2.1% to $95,000, although there were wide regional differences, the realtors group said.

“What we’ve got here is a picture of a housing market in which activity remains historically strong, but varies across the country,” said John Tuccillo, the realtors’ chief economist.