Pre-owned US home sales rise to one-year high
Sales pace of second-hand houses exceeds five million for the fifth consecutive month
Purchases of second-hand homes in the United States unexpectedly rose last month to a one-year high as low borrowing costs sustained the recovery in residential real estate.
Existing homes sold at a 5.26 million annual pace, the strongest since September last year and up 1.5 per cent from a revised 5.18 million pace in September, the National Association of Realtors reported.
It was the fifth consecutive month that the sales pace topped 5 million.
Prices also climbed, the association said.
Employment growth and mortgage rates near historic lows are helping stir buying interest that will probably underpin the economy. At the same time, limited wage gains, student debt and stricter lending standards are headwinds for those looking to own for the first time.
"This is much healthier than we've seen over the last year or so," said Scott Brown, the chief economist at Raymond James & Associates, who projected a 5.25 million pace of sales. "We're still a long way from recovery, but we're on our way."
The median forecast in a survey of 78 economists called for a 5.15 million pace of resales, with estimates ranging from 5.05 million to 5.27 million. September's figure was revised from a previously reported 5.17 million.