The NAR (National Association of Realtors) reported on November 2 that its index of sales which is seasonally adjusted, increased just over 6% from the month of August up to a reading of 110.1. This was the highest reading of the index since December of 2006, and upwards of 21% higher than just last year. Some economists who were recently surveyed predicted that the index would come in at 103.8.
Over the past several months, the housing market has been experiencing a rebound from its most severe downturn in decades. The recovery had been aided by government intervention with offerings to consumers like the $8000 first- time home buyer tax credit. The credit, along with historically-low interest rates has drawn thousands of buyers into the market.
The level of completes home resales through the month of September reached their highest level in more than 2 years. Buyers have been scrambling to close their sales prior to the November 30 tax credit deadline.
Currently, Congress is working to extend the credit and to offer an additional credit of $6,500 to buyers who move into other homes that have resided in their current residence for at least five years.
Lawrence Yun, chief economist of the NAR stated that as foreclosures continue to increase, an extension of the credit id needed to help reduce the anticipated increase in available inventory.
In the West sales showed an increase of ten percent throughout September.
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