Existing-home sales in October rose to the highest level in more than two years, according to a report released Monday, driven by the popularity of a credit for first-time home buyers. The surge far outpaced expectations and nurtured hope that the stubbornly frail housing market might be on the upswing.
Sales of existing homes were up 10.1 percent in October to an annual rate of 6.1 million, the National Association of Realtors said in a report Monday. That was a level last seen in February 2007, before the collapse of the housing sector. Analysts surveyed by Bloomberg News had predicted a 2.3 percent increase.
The group attributed the gain to the popularity of a government-financed credit of up to $8,000 for first-time home buyers.
Inventories continued to shrink, the report said, and prices, while still lower, fell by the smallest amount in more than a year. Sales of lower-cost homes fueled the gains.
Total sales were up 23.5 percent from the October 2008 rate of 4.94 million. In addition, sales for the 12-month period from October 2008 to October 2009 reached 4.4 million, up slightly from the October 2007 to October 2008 levels.
http://www.nytimes.com/2009/11/24/business/economy/24econ.html?_r=1&8au&emc=au
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