U.S. existing home sales rise in September

U.S. home salesunexpectedlyrose in September as buyers defied gathering bad economic news and went bargain hunting, according to figures released Friday.

The National Association of Realtors said sales of existing homes in the United States rose by 5.5 per cent in September despite it being the month in which the financial crisis hit the world economy hard.

About 5.18 millionexisting homes changed hands across the United States in September, once seasonal differences were accounted forand monthly figures were grossed up to an annual rate.

Those numbers which are a sign of activity in the troubled housing market represented a gain of 270,000 homes sold compared to August.

"This is the first time since November 2005 that home sales have been above year-ago levels," NAP president Richard Gaylord said in a statement.

September was alsothe best month-to-month improvementin the number of new homes bought and sold in the past 12 months.

Falling prices are one possible explanation for the rise in sales.

In September, theprice for a single-family home fell by 8.6 per cent, slippingtoslightly more than $190,000 US on average.Indeed, since peaking in June at $213,000,home prices have fallenby 11 per cent.

The northeasternUnited Stateshas felt the effects of the slumping house market to an even greater degree.

Prices in that region have dropped by14.5 per cent since hitting a 12-month peak in March.A dwelling thatused to cost $291,000 now goes for $248,700, according to NAR figures.