In 2.5 Years Home Sales Increased to the Highest Level

November 25, 2009
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Home sales rise to highest level in 2.5 years

October home sales went up 10.1 percent, beating the expectations, as tax credit prompted sales.

For second month in a row in October, home sales ascended to the highest level in two and a half years as first time buyers hurried to take advantage of an expiring tax credit.

According to the data showed on Monday, home sales are now up to nearly 36 percent far from their bottom in January, although the sales are still 16 percent below the peak in autumn of 2005. There is only a 7-month supply of homes on the market and in some areas where there are bidding wars.

The National Association of Realtors stated that home re-sales increased 10.1 percent to a seasonally adjusted annual rate of 6.1 million in October compared to 5.54 million in September. It was the biggest monthly raise in a decade and far above the 5.65 million-pace that was expected by economists, added Thomson Reuters.

Furthermore, an additional concern is that job losses are pushing once creditworthy homeowners into evasion. In Mortgage Bankers Association’s statement last week, it pointed out that borrowers with prime, fixed-rate loans were accounted for one in three new foreclosures in the second quarter. Records of 14 percent of homeowners with mortgage were either at the back on their payments or were in foreclosure.

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