Existing Home Sales: Another Big Gain in Existing-Home Sales as Buyers Respond to Tax Credit
Existing home sales in the US continued their upward trend in October, according to the National Association of Realtors, led heavily by buyers taking advantage of the government’s expiring $8,000 tax credit. NAR chief economist Lawrence Yun said:
“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. 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.”
Total sales jumped up 10.1 percent in October, to a seasonally adjusted pace of 6.10 million units, up from a downwardly revised sales rate of 5.54 million the previous month. October figures are also up 23.5 percent from one year earlier.
The national median price for existing homes fell to $173,100 from $174,900 in September. The new median is down 7.1 percent over the previous year. However, the NAR expects to see prices stabilize and even rise during 2010.
The NAR defines existing homes as all previously-owned single-family homes, townhouses, condominiums, and co-ops. The group “seasonally adjusts” the sales numbers to factor in things like inclement weather, school sessions, winter holidays, etc. to smooth out the trends. The NAR also describes its sales data based on an annual pace. The monthly figure represents the total number of housing units that would be sold in one year if the current rate were to continue unchanged.
