Lower Prices Lift Home Sales to 13-Month High

Washington, DC, Oct. 24, 2008--Boosted by foreclosures and plunging prices, sales of pre-owned homes and condos rose sharply in September to the highest level in 13 months, according to the National Association of Realtors.

Existing-home sales rose 5.5% to a seasonally adjusted annual rate of 5.18 million, the National Association of Realtors estimated Friday. Economists expected sales to rise to a 5 million pace.

It was the largest monthly percentage increase in five years. Sales of existing homes were 1.4% higher in September than they were a year earlier; it was the first year-on-year increase in nearly three years.

The median sales price fell 9% in the past year to $191,600, the lowest since April 2004. Prices plunged 18.5% in the West region, driven by high levels of distressed sales.