• Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
  • PRODUCTS
  • A&D
  • INSTALLATION
  • MARKETS
  • AWARDS
  • EDUCATION
  • BUYER'S GUIDE
  • MEDIA
  • EMAGAZINE
  • SIGN UP
cart
facebook twitter linkedin youtube
  • NEWS
  • Breaking Flooring News
  • eNewsletters
  • PRODUCTS
  • Carpet & Area Rugs
  • Hardwood
  • Installation Products
  • Installation Tools & Equipment
  • Laminate
  • Resilient
  • Specialty
  • Tile & Stone
  • MARKETS
  • Commercial
  • Residential
  • AWARDS
  • Installation Awards
  • Top Flooring Products
  • EDUCATION
  • Continuing Education
  • Webinars
  • MEDIA
  • FLOOR Podcast
  • Videos
  • TISE 2025 Videos
  • eBooks
  • EMAGAZINE
  • eMagazine
  • Archive Issues
  • Contact
  • Advertise
search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
    • Breaking Flooring News
    • eNewsletters
  • PRODUCTS
    • Carpet & Area Rugs
    • Hardwood
    • Installation Products
    • Installation Tools & Equipment
    • Laminate
    • Resilient
    • Specialty
    • Tile & Stone
  • A&D
  • INSTALLATION
  • MARKETS
    • Commercial
    • Residential
  • AWARDS
    • Installation Awards
    • Top Flooring Products
  • EDUCATION
    • Continuing Education
    • Webinars
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP
Breaking Flooring News

Existing home sales hit record, but short-term outlook softens

September 25, 2001
WASHINGTON, D.C. -- Sales of existing single-family homes reached a new record in August, but sales are now slowing and likely will be lower than previously expected over the months ahead, according to a report from the National Association of Realtors.

Existing-home sales rose 5.8% in August to a seasonally adjusted annual rate of 5.50 million units from an upwardly revised level of 5.20 million units in July, the trade group said. Last month's sales activity remained 5% ahead of the 5.24-million unit pace of August 2000. The previous record, which was set in June 1999, was an annual rate of 5.45 million units.

Dr. David Lereah, NAR's chief economist, described the August report as ironic. “Like everything else, this bright spot in the American economy has been eclipsed by the events of Sept. 11,” he said. “After setting a new record for existing-home sales in August, our internal tracking shows a downturn following the attack on America, and there will be some natural pullback from big-ticket purchases in the months ahead given uncertainty over the future.”

NAR now expects home resale activity to average below the 5.0 million-unit rate through the first quarter of 2002.

“The negative effect should be temporary because the fundamentals of the U.S. economy remain favorable, and we should experience a delayed rebound,” Lereah added. “Assuming we're successful in preventing additional attacks, the rebound will be postponed until next year as we work toward market stabilization.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage was 6.95% in August, down from 7.13% in July; it was 8.03% in August 2000.

“We now expect mortgage interest rates to move even lower to about 6.7% in the fourth quarter, which basically would match a record low,” NAR President Richard A. Mendenhall said. “This is supporting the housing market and will be especially helpful to first-time home buyers.”

Housing inventory levels at the end of August rose 8.5% from July to 2.18 million existing homes available for sale, which represents a 4.8-month supply at the current sales pace. “The supply of homes on the market remains lower than historic norms, which is contributing to stronger price appreciation in many areas,” Lereah noted.

“In addition to very low interest rates, we continue to experience strong household formation which is fueling the entry-level market. Once we work through the impact of job cuts, and the economy stabilizes, we should see a very nice rebound in both housing and the general economy.”

Lereah also predicted that the government stimulus package, insurance payouts and easy monetary policy should contribute to consumer confidence. For all of this year, Lereah expects 5.19 million existing home sales, up 1.3% from 2000, but dipping below the 5-million annual rate before rising again next year for a total of 5.17 million in 2002. For this year, he expects 898,000 new home sales – which would be a new record – and then a rise to 902,000 units in 2002. The forecast for housing starts is 1.57 million units in 2001, and 1.53 million next year.

NAR expects U.S. economic growth, as measured by the Gross Domestic Product (GDP), to contract by 0.6% in the third quarter with a continued decline of 0.2% in the fourth quarter. GDP should then rise gradually to a 3.4% growth rate by the second quarter of 2002. Consumer price inflation for this year is expected to come in at 3.1%, and then dip to 2.7% in 2002.

Regionally, home resale activity in the West rose 9.8% from July to an annual rate of 1.46 million units in August; they were 3.5% higher than August 2000. The median existing-home price in the West was $201,800, up 6.7% from the same month a year earlier.

Existing-home sales in the Northeast rose 6.2% in August to a pace of 690,000 units; the sales rate was 3.0% above August 2000. The median existing-home price in the Northeast was $154,100, up 10.6% from a year ago. The existing-home sales pace in the South rose 5.3% in August to an annual rate of 2.18 million units, and were 8.5% above August 2000.

The median price of an existing home in the South was $145,100, which was 10.4% higher than August 2000. In the Midwest, homes were reselling at an annual rate of 1.17 million units in August, up 2.6% from July, and were 1.7% above August 2000.

Share This Story

Looking for a reprint of this article?
From high-res PDFs to custom plaques, order your copy today!

Recommended Content

JOIN TODAY
To unlock your recommendations.

Already have an account? Sign In

  • resilient flooring

    The 7 Types of Resilient Flooring

    The resilient flooring category is comprised of many...
    Resilient Flooring
    By: Resilient Floorcovering Institute
  • QuickDrain USA’s ShowerLine linear drain

    Tips for Curbless Shower Installation Using a Linear Drain

    Consider these four tips when planning for a curbless...
    Flooring Installation
    By: Darryl Jones
  • 2024 New Flooring Product Guide

    2024 New Flooring Products Guide

    We explore this year's introductions in area rugs,...
    Commercial Flooring
    By: FLOOR Trends & Installation Editors
You must login or register in order to post a comment.

Report Abusive Comment

Manage My Account
  • eMagazine
  • eNewsletter
  • Online Registration
  • Manage My Preferences
  • Subscription Customer Service

What Shaw Flooring Network Dealers are Banking on for 2025

What Shaw Flooring Network Dealers are Banking on for 2025

Takeaways from the 2024 AHSG Convention & Member Outlook for 2025

Takeaways from the 2024 AHSG Convention & Member Outlook for 2025

Retailers Share Top Takeaways from Shaw Flooring Network Convention

Retailers Share Top Takeaways from Shaw Flooring Network Convention

Shaw Flooring Network Retailers Report Post-Election Sales Surge

Shaw Flooring Network Retailers Report Post-Election Sales Surge

More Videos

Popular Stories

Shaw Americana Oak

Wood Flooring Trends: Natural Finishes and Classic Patterns Make a Comeback in 2025

Fishman Knoxville Tennessee location interior

From Tariff Talk to Trade Labor: Fishman's West Region Manager on Flooring Industry Challenges

salesperson meeting with clients

How to Dominate Flooring Sales: The Art of Listening Before Selling


Download the Free Moisture Meters Guide

Events

December 1, 2030

Webinar Sponsorship Information

For webinar sponsorship information, visit www.bnpevents.com/webinars or email webinars@bnpmedia.com.

View All Submit An Event

Poll

Growth Challenges in the Flooring Industry

What’s holding you back from growth in 2025?
View Results Poll Archive

Products

2025 BNI Interiors Square Foot Costbook

2025 BNI Interiors Square Foot Costbook

See More Products

FLOORtalk podcasts - Listen Now

Related Articles

  • Existing home sales hit new record in January

    See More
  • Existing-home sales hit new record in January, says NAR

    See More
  • Existing home sales hit record in May, reports NAR

    See More
×

We’re rolling out the red carpet of flooring knowledge!

Stay in the know on the latest flooring retail trends.

JOIN TODAY!
  • RESOURCES
    • Advertise
    • Contact Us
    • Directories
    • Store
    • Want More
  • SIGN UP TODAY
    • Create Account
    • eMagazine
    • eNewsletters
    • Customer Service
    • Manage Preferences
  • SERVICES
    • Marketing Services
    • Reprints
    • Market Research
    • List Rental
    • Survey/Respondent Access
  • STAY CONNECTED
    • LinkedIn
    • Facebook
    • Instagram
    • YouTube
    • X (Twitter)
  • PRIVACY
    • PRIVACY POLICY
    • TERMS & CONDITIONS
    • DO NOT SELL MY PERSONAL INFORMATION
    • PRIVACY REQUEST
    • ACCESSIBILITY

Copyright ©2025. All Rights Reserved BNP Media.

Design, CMS, Hosting & Web Development :: ePublishing

search
cart
facebook twitter linkedin youtube
  • Sign In
  • Create Account
  • Sign Out
  • My Account
  • NEWS
    • Breaking Flooring News
    • eNewsletters
  • PRODUCTS
    • Carpet & Area Rugs
    • Hardwood
    • Installation Products
    • Installation Tools & Equipment
    • Laminate
    • Resilient
    • Specialty
    • Tile & Stone
  • A&D
  • INSTALLATION
  • MARKETS
    • Commercial
    • Residential
  • AWARDS
    • Installation Awards
    • Top Flooring Products
  • EDUCATION
    • Continuing Education
    • Webinars
  • BUYER'S GUIDE
  • MEDIA
    • FLOOR Podcast
    • Videos
    • TISE 2025 Videos
    • eBooks
  • EMAGAZINE
    • eMagazine
    • Archive Issues
    • Contact
    • Advertise
  • SIGN UP