WASHINGTON (October 27, 2003) – The market for existing single-family homes rose again in September and set a third consecutive monthly record, according to the National Association of Realtors®. Existing-home sales rose 3.6 percent to a seasonally adjusted annual rate* of 6.69 million units in September from a pace of 6.46 million units in August. Last month's sales activity was 20.8 percent above the 5.54-million unit pace in September 2002. David Lereah, NAR's chief economist, said a strong performance was expected. "We knew the September pace for existing-home sales was going to be a big number, but after setting records in July and August we thought the pace might start to slow," he said. "This underscores the powerful fundamentals that are driving the housing market – household growth, low interest rates and an improving economy." According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.15 percent in September, down from 6.26 percent in August; it was 6.09 percent in September 2002. NAR President Cathy Whatley, owner of Buck & Buck Inc. in Jacksonville, Fla., said 2003 will be a difficult year to top. "We're expecting existing-home sales to rise about 6 percent over last year's record to roughly 5.9 million sales in 2003, "she said. "Favorable market conditions will continue to drive home sales in 2004, but it will be hard to match this year's unprecedented level." Housing inventory levels at the end of September dropped 1.2 percent from August to a total of 2.40 million existing homes available for sale, which represents a 4.3-month supply at the current sales pace. "This is a very tight inventory situation, which is continuing to drive home price appreciation," Lereah said. The national median existing-home price was $172,300 in September, up 9.1 percent from September 2002 when the median price was $157,900. The median is a typical market price where half of the homes sold for more and half sold for less. Lereah noted the September median price is below August – a normal seasonal occurrence because there is a higher ratio of singles and childless couples in the market who are generally purchasing moderately priced homes. Most families with children, who typically buy more expensive homes, often time their purchase to move by the end of summer based on school year considerations. "With median home prices, the only valid comparisons are with the same period a year earlier," he explained. Regionally, existing-home sales in the Northeast rose 7.0 percent in September to a record pace of 760,000 units, and were 18.8 percent above September 2002. The median existing-home price in the Northeast was $194,500, up 19.7 percent from a year ago. Home resales in the West increased 5.1 percent in September to a record annual rate of 1.85 million units, and were 26.7 percent above a year earlier. The median existing-home price in the West was $230,700, up 9.2 percent from the same month in 2002. Existing homes in the Midwest were selling at a record annual rate of 1.43 million units in September, up 4.4 percent from August; the pace was 17.2 percent above September 2002. The median price in the Midwest was $145,200, up 4.2 percent from a year ago. The existing-home sales pace in the South was up 0.8 percent in September to a record annual rate of 2.64 million units, and was 18.4 percent above last September. The median price of an existing home in the South was $158,800, which was 8.0 percent higher than a year ago. *The annual rate for a particular month represents what the total number of actual sales for a year would be if the relative pace for that month were maintained for 12 consecutive months. Seasonally adjusted annual rates are used in reporting monthly data to factor out seasonal variations in resale activity. For example, home sales volume is normally higher in the summer than in the winter, primarily because of differences in the weather and family buying patterns. Existing-home sales, which are based on transaction closings, differ from the U.S. Census Bureau's series on new-home sales, which are based on contracts or the acceptance of a deposit. In the count of new-home sales, the house can be in any stage of construction ranging from not started to fully complete. The count of existing-home sales is based on completed transactions in which the home usually is ready for occupancy. Because of these differences, it is not uncommon for each series to move in different directions in the same month. In addition, existing-home sales, which generally account for 85 percent of total home sales, are based on a much larger sample and typically are not subject to large prior-month revisions that are fairly common in the new-home sales series. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing more than 950,000 members involved in all aspects of the residential and commercial real estate industries.