Fundamentally Sound

Strong housing market fundamentals propelled total existing-home sales to the highest pace on record in the second quarter, according to the National Association of Realtors.

Sales rose by double-digit rates in 34 states and the District of Columbia compared to the same quarter in 2003 and no state recorded a decline.

David Lereah, NAR's chief economist, said low mortgage interest rates are only part of the picture. "Technology steamligning in mortgage origination has reduced costs in recent years through increased efficiencies," he said. "Combine that with low interest rates and a strong demand from both the growing and aging segments of the population, along with rising consumer confidence in an improving economy, and you have both the wherewithal and the need to create a record housing market."

Regionally, the West experienced the strongest increase with sales activity in the second quarter at a record annual rate of 2.17 million units, up 19.8 percent from a year ago. In Colorado, existing home sales rose 23.5 percent from the second quarter of 2003.

Colorado Local Associations/boards MLS's reported sales gains in 22 areas in the first six months of this year compared to the first six months of this year compared to the first six months of 2003. While all of the local associations/boards below reported an increase in sold single family units compared to the first six months of 2003.