Roanoke Times
                 Copyright (c) 1995, Landmark Communications, Inc.

DATE: SATURDAY, March 30, 1991                   TAG: 9103300156
SECTION: BUSINESS                    PAGE: A-10   EDITION: METRO 
SOURCE: From wire and staff reports
DATELINE: WASHINGTON                                LENGTH: Medium

SALES OF NEW HOMES SHOT UP 16.2 PERCENT IN

The Commerce Department said the February gain, the first increase since November, was paced by a huge advance in sales in the Midwest although all regions of the country enjoyed increases from an extremely depressed January level.

The report was the third piece of evidence of an emerging rebound in the housing industry.

Sales of existing homes were up 7.9 percent last month, also the biggest rise in nearly five years, while construction of new homes and apartments rose and applications for new building permits posted the first gain in eight months.

"One month's statistics should not be overemphasized, but the trend toward an upturned market is definitely very real," said John Tuccillo, chief economist of the National Association of Realtors. "People are back in the market due to low interest rates and postwar euphoria."

In the Roanoke Valley, the number of houses sold - both new and existing - rose 52.1 percent between 117 in January and 178 in February, according to the Roanoke Valley Association of Realtors. However, the February count was 53.2 percent below the 380 houses sold in February 1990.

Friday's Commerce Department report showed that the upswing in new home sales was accompanied by a rise in prices in February to near-record levels.

The median selling price climbed to $127,500. That was up from $120,000 in January and was the highest since a record of $130,000 in April 1990. The median is the point at which as many homes sell for higher prices as for lower.

The average price was up as well, rising to $156,800, the highest since a record $158,600 set in September 1989.

The Midwest enjoyed the biggest gain of any region, a record 70.3 percent increase. Analysts said some of this huge jump was undoubtedly related to unusually warm weather during the month and said it was unlikely that sales in the Midwest would stay at the high annual rate of 109,000 units.

Sales in the South were up 9.1 percent to an annual rate of 192,000 units while sales in the Northeast rose 5.9 percent to a rate of 54,000 units. Sales in the West posted the smallest gain during the month, a 1 percent rise to a rate of 113,000 units.