The category of existing homes includes townhomes, single-family homes, co-ops and condominiums. This important category surged just over 10% to a seasonally-adjusted rate of just over six million units sold in the month of October. Sales rates are nearly 24% higher than last year. The most recent high point was recorded in February of 2007 when just over 6.5 million homes were sold.
The home buyer tax credit which was set to expire on November 30 has been extended through April 30 of next year. A recent survey conducted by the NAR showed that there is pent up demand out there in the market. Results of the survey showed that 13% of first time buyers had a previous contract that either fell-through or was cancelled.
Lawrence Yun, chief economist for the NAR reports that mortgage rates in October were the 3rd lowest on record since dating back to 1971. The national average rate of commitment on a 30 yr. conventional mortgage at a fixed rate dropped to 4.95% in October, down from 5.06% in the month of September. In October of 2008, the rate was 6.20%.
The total available housing inventory by the end of October dropped just over 3.5% to slightly higher than 3.5 million units. This represents a seven-month supply, down one full month's worth since September.
In the West, existing-home sales went up just over 1.5% to an annual rate of one point three one million units for the month of October. This is 12% higher than 2008. The median price throughout the West was just over $220,000, nearly 15% lower than October 2008.
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