Home Sales in October Fall to 6-Year Low

Existing home sales fell 4.7% in October to their lowest level in nearly six years, a real estate trade group said today.

The National Assn. of Realtors said house resales totaled a seasonally adjusted annual rate of 3.02 million, compared to 3.17 million in September.

It was the lowest sales rate since February, 1985, when it dropped to 2.95 million.

Reports of persistent budget deficit woes, general economic sluggishness nationwide and the threat of war against Iraq have created psychological barriers that are blocking home purchases, association President Harley E. Rouda said.

Mortgage interest rates, which had been blamed for weak sales in previous months, have remained relatively stable. The Federal Home Loan Mortgage Corp. reported the average rate for a 30-year, conventional fixed-rate mortgage ranged between 10.08% and 10.17% during October.

The current rates are in marked contrast to the last home-buying slump in 1982, when rates ranged between 16% and 18%.

At the same time, the realtors group said the median price of an existing home was $92,800 in October, down 1.7% from September.

Month-to-month sales declines were recorded in each of the regions, while all but the West posted lower median prices.

In the Northeast, the resale pace was 9.6% below the September rate, while sales were down 5.8% in the West.