Washington – Sales of existing homes fell a bigger-than-expected 2.7 percent in October, a fresh sign that the red-hot housing market is cooling. The decline would have been worse without increased demand from displaced hurricane victims.
Though prices rose at the fastest clip in more than a quarter- century, the number of unsold homes rose to the highest level in 19 years.
Analysts forecast that the backlog will dampen future price gains.
The National Association of Realtors reported Monday that sales of existing homes and condominiums fell by 2.7 percent in October, more than double the 1.1 percent decline analysts expected.
It left sales at a seasonally adjusted annual rate of 7.09 million, down from a sales rate of 7.29 million units in September, which was the second-fastest pace on record.
In Denver, sales of existing homes fell by 10.2 percent in October, to 4,336. They fell again in November, to 4,225.
Economists said the latest report, which showed sales declines in all regions of the country, appeared to be a signal that the booming housing market was beginning to slow under the impact of steadily rising mortgage rates.
The median, or midpoint, price of an existing home sold last month rose to $218,000 nationally. In Denver, the median price of a single-family home was steady at $250,000.
Denver Post staff writer Margaret Jackson contributed to this report.
