Sales of existing home sales recorded a big jump in October, owing largely to the first-time buyer tax credit, said the National Association of Realtors (NAR) today, in Washington.
October’s surge in existing home sales, which include, single-family, townhomes, condominiums and co-ops, increased by 10.1 percent to a seasonally adjusted annual rate of 6.1 million units, up by 5.54 million in September 2009 and 23.5 percent above the 4.94 million unit level in October 2008.
According to the National Association of Realtors, sales activity is at the highest level since February 2007 when it hit 6.55 million.
“Many buyers have been rushing to beat the deadline for the first-time buyer tax credit that was scheduled to expire at the end of this month, and similarly robust sales may be occurring in November,” said Lawrence Yun, NAR chief economist, who was surprised at the size of the October gain. “With such a sale spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer.”
