Sales of Existing Homes in U.S. Increase More Than Forecast

Sales of previously owned U.S. homes increased more than projected in September, showing residential real estate continues to contribute modestly to growth, National Association of Realtors data showed Thursday.

Solid job growth, a recovery in home values since the last recession and 30-year fixed mortgage rates near the lowest level since the 1970s are keeping residential real estate on a steady path forward. At the same time, home prices continue to outpace income gains, limiting the strength of housing and the market’s impact on economic growth. A pickup in construction would give Americans more homes to choose from, boosting turnover and helping bring about more moderate price gains needed to attract a larger share of first-time buyers. Property listings declined on a year-over-year basis for a 16th consecutive month in September.