Home sales in the Charlotte area were up more than 21 percent in November, thanks to low interest rates and the continued demand for moderately priced homes.

Real estate pros called the news pleasantly surprising - even flabbergasting, in this uncertain economy - but cautioned that it doesn't signal the end of the doldrums.

For one thing, November last year was particularly slow, which magnifies the difference between sales last month and sales during the same period last year.

"Last November was one of the coldest since the 1890s," said Mark Vitner, vice president and economist at Wachovia Securities. "Last November was horrible, so it's not surprising that we're seeing improvement.

"We'll probably see a pretty good number in December, but I don't think that the housing market is on the verge of a sharp turnaround."

According to the November report of the Carolina Multiple Listing Services, the agency that serves Mecklenburg and surrounding counties, contracts on homes, condos and townhouses totaled 1,932 in November, compared with 1,587 during the same month last year. That's an increase of 21.7 percent.

Contracts are the most current snapshot of sales activity. Closings, for instance, typically occur 45 days after contracts are signed.

Last year, contracts fell almost 18 percent from October to November - and it snowed before Thanksgiving - in that "horrible" month Vitner mentioned.

Home sales and refinancings have remained surprisingly strong during the slowdown, in Charlotte and across the country, buoying the entire economy.

The National Association of Realtors said sales of previously owned homes across the country increased 5.5 percent in October, the most recent figures available. National figures for November won't be out until after Christmas. In Charlotte, home sales through the MLS were up 14 percent in October.

NAR spokesman Walter Molony said the association on Thursday tweaked its forecast, and predicts that sales will be up 1.6 percent this year.

Despite such reassuring indicators, Chuck Graham of Newton Graham Consultants said he was pleasantly surprised by November sales in Charlotte.

"Actually, I was flabbergasted," said Graham, who tracks the housing market for builders and developers. "I'm excited they've had that much of an increase."

Graham attributed much of the good news to mortgage interest rates, which were near historic lows a month ago before bouncing up a bit.

Both those factors - the rates and the bounce - helped spur sales.

Low rates make homes affordable to more families. "Every quarter point reduction in the interest rate adds 100,000 people (nationwide) to the market for buying a new house," he said. "So you have more people streaming into the market from an affordability factor."

Many of those families buy moderately priced homes, which helps explain why sales of homes priced from $120,000 to $160,000 - especially new homes - have remained relatively strong in the Charlotte area. In contrast, sales of the most expensive homes - those priced higher than $400,000 in Charlotte - have lagged here and across the country.

The median price of all homes, condos and townhouses sold through the MLS in November was $136,000. The average was higher - $177,951 - but experts say the median is a better indicator of what's going on in the market. Half of home sale prices are below the median, and half are above it.

Any uptick in mortgage rates sends borrowers scurrying to their lenders, Graham said.

Some borrowers wait for the very lowest rates - and then realize they've missed the opportunity when rates start up. "There's a surge, because people realize they've missed the bottom," he said.

Rates advertised in today's Home section are mostly at 6.75 percent with 1 point - a fee equal to 1 percent of the mortgage amount.

Mike Rash of Prudential Carolinas Realty, president of the Charlotte Regional Realtor Association, agreed with Vitner's analysis of the sales figures.

Last November was pretty bad, he said, and this November - thanks to the favorable interest rates - was pretty good. But some segments of the local economy and job market remain uncertain, and last month's figures don't signal an end to the recession.

"Every month that goes by, (sales) are still off some," Rash said. "There's a lot of pent-up demand being created. By mid-March or April, I expect us to come out of this in a big way."

November sales figures are another indication that the nation is recovering from the emotional blow of Sept. 11, he said. "We're coming to grips with the initial shock, getting back into normal patterns. That's good news in the market."