Existing-home sales up, driven by foreclosures

9/22/2011

WASHINGTON -- The number of Americans who bought previously occupied homes rose in August. But sales were driven by an increase in foreclosures, a sign that home prices could fall further next year.

The National Association of Realtors said yesterday that home sales rose 7.7 percent last month to a seasonally adjusted annual rate of 5.03 million homes. That’s below the 6 million that economists say is consistent with a healthy housing market.

Last month’s pace was ahead of the 4.91 million sold in 2010, the worst sales level in 13 years.