Consumer Confidence Propels Housing Numbers

Despite a slight drop off in existing home sales last month, this year’s figures are still ahead of the pace from October 2004, according to a National Association of Realtors report. that in October, existing homes sales for both single-family and condos declined moderately.

The survey indicated that “total existing home sales,” comprised of single-family, townhomes, condominiums and co-ops, were down 2.7% to a seasonally adjusted annual rate of 7.09 million units. September’s total existing home sales rate was 7.29 million. Overall housing remains strong in comparison to the previous year, with sales for October 2005 coming in 3.7% above the October 2004 level of 6.84 million.

“The accelerated trend in existing home sales that began in 2002 remains intact despite fluctuations in interest rates,” says Bob Walters, Chief Economist of Quicken Loans. “Overall interest rates have been favorable toward housing for several years, and a positive employment outlook coupled with strong consumer sentiment continues to drive the industry’s robust performance.”

These numbers are supported by the Florida home loan market. As previously discussed, Jacksonville housing numbers, along with other areas of the state, have remained strong in recent months.