Home Sales Rise by 8 Percent; Increase Is Largest In Nearly 5 Years
Sales of existing homes shot up 7.9 percent in February, the first increase since November and the biggest in nearly five years, giving some private economists hope that a housing rebound may herald the end of the recession.</br></br>The National Association of Realtors said yesterday that the February increase put sales of existing, single-family homes at a seasonally adjusted annual rate of 3.13 million units.</br></br>The February bounce, which essentially erased a 7.3 percent plunge in January, was attributed to falling home prices and lower mortgage rates luring buyers back into the market following the end of the Persian Gulf War.</br></br>"After months of sputtering, it looks as though many markets across the nation have passed their low point and are regaining strength. People are ready to buy," said Harley Rouda, NAR president.</br></br>However, analysts were not as upbeat about reports on car sales in mid-March, which showed sales for the two biggest companies, General Motors Corp. and Ford Motor Co., down substantially from the same period a year ago.