US home sales continue to rise

| November 23, 2009 | 0 Comments
US home sales continue to rise

The National Association of Realtors has revealed a rise in sales of previously owned homes in the US for the month of October.

The industry body said sales surged 10.1% to an annual rate of 6.1 million units in October, up from a revised 5.54 million the previous month.

Not only was the rise in October sales the highest in nearly three years - it also exceeded analysts expectations.

The boost in sales was the result of lower mortgage rates, as well as buyers taking advantage of tax credits, which have now been extended until 30 April.

Lawrence Yun, the association’s chief economist, comments: “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.”

Due to popular demand and industry pressure, US Congress voted to extend the first-time buyer tax credit and expand it to include other home purchases as well.

The tax credit has boosted the sales of homes and according to Mr Yun, the supply of homes on the market was now at its lowest level for two-and-a-half years.

However, he cautions that sales could slide in the next few months.

“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,” concluded Yun.

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