Powerful October for U.S. real estate

Demonstrating the strength of the housing market, sales of existing single-family homes nationwide rose to unusually high levels in October, according to the National Assn. of Realtors.

Existing-home sales increased 6.1% in October to a seasonally adjusted annual rate of 5.77 million units from an upwardly revised level of 5.44 million units in September. The sales activity was 9.5% above the 5.27-million unit pace in October 2001 and was tied for the third-highest pace on record.

David Lereah, the association’s chief economist, said a couple of factors are at play. “Obviously, historical lows in mortgage interest rates in recent months are a big stimulus,” he said. “At the same time, the inventory of homes on the market, which was historically lean during the first half of the year and limited housing choices, improved in August and September.”

The national median price was $159,600 in October, up 9.8% from October 2001 when the median price was $145,400.