U.S. existing home sales rise

Sales of previously occupied homes in the United States rose in September, the National Association of Realtors said Monday.

The gain of 10 per cent from the month before to a seasonally adjusted annual rate of 4.53 million came after a dismal summer but remains well short of healthy levels.

The rise exceeded market expectations for a 4.1 per cent increase.

Sales were still down 19 per cent from the same month a year earlier. August results were revised downward slightly.

High unemployment, tight credit and the prospect of future declines in home prices have kept people out of the housing market.

As well, would-be buyers of foreclosed properties are wary of the prospect of lawsuits from former homeowners claiming banks made errors when seizing their homes.

The median sale price was $171,700 US, down 2.4 per cent from September 2009, and in strong contrast with August's 0.2 per cent increase from July.

The number of homes available for sale fell by 3.4 per cent, leaving what the Association calculated is a 10.7-month supply. It said supply in a normal market would be enough for about five months.

"As long as a broader economic recovery continues and job growth improves, housing demand should continue to rise," James Marple, senior economist with TD Economics, said in a commentary.

"Nonetheless ... obstacles to recovery continue to show up at inopportune times. We've taken the Tylenol, but the housing hangover is not quite cured yet," Marple wrote.