The National Association of Realtors reported today that existing home sales in April rose 4.5% to a seasonally adjusted rate of 7.18 million units, the highest level on record. Sales for March were revised downward to a 6.87 million annual rate. Home sales continue to defy forecasts, which have called for a gradual slowing in the housing market.

Existing home sales hit record highs in April and if forecasts hold true, 2005 will be another very strong year for the housing market. During the first quarter of this year, home re-sales were at their third highest pace on record, rising significantly from the same time period last year.

An improving employment picture, increased wage growth and low borrowing costs are fueling housing right now. If the economy continues to expand and longer term mortgage rates stay at near historic lows, we should expect this trend to continue. With rates holding steady at such low levels, many consumers are in an "act now" frame of mind.

Publish Date: 05/24/2005