Home Sales Hit Record in 2001, NAR Says

Sales of new and existing homes set records in 2001, even after a pause in sales after the Sept. 11 attacks, as low mortgage rates spurred buying, the National Assn. of Realtors said.

Existing-home sales rose 2.5% from 2000 to 5.25 million, and new-home sales rose 2.5% to 902,000, the Washington-based trade group estimated. The previous record for existing homes was 5.21 million sold in 1999, and the old record for new homes was 885,000 in 1998.

For 2002, the group expects existing-home sales to fall 0.5% to 5.23 million, and new-home sales to drop 3.2% to 874,000, as mortgage rates rise to 7.3% by the third quarter.