Previously owned homes sold at record pace last month

WASHINGTON – Sales of previously owned homes in November posted their best month on record as low mortgage rates enticed buyers to live the American dream.

The National Association of Realtors reported Wednesday that sales, at a seasonally adjusted annual rate, totaled an all-time monthly high of 6.94 million units, representing a 2.7 percent increase from October’s pace.

While some other recent reports raised questions as to whether the high-flying housing market might be losing a bit of altitude, Wednesday’s report suggested the sector is still humming along.

“So far, the stars have been aligned” for the housing market, said David Lereah, the association’s chief economist, referring to low mortgage rates, good demand and a solid economic recovery.

The latest snapshot of demand for previously owned homes was better than economists were expecting. They were forecasting sales to hold steady.

“If you thought the housing market was beginning to soften, think again,” said Joel Naroff, president of Naroff Economic Advisors.

The previous, monthly high record pace of sales – 6.92 million units – was set in June.

Sales for October totaled 6.76 million units, on an annualized basis, according to revised figures. That was slightly higher than initially reported.

Aided by low mortgage rates, sales of both previously owned homes and new ones are on track to high record highs for all of 2004, analysts said.