Existing home sales were up 23.5 percent from a year earlier and sales activity was at
the highest pace since February 2007, NAR says.
“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,” said NAR chief economist Lawrence Yun. “With such a sales
spike, a measurable decline should be anticipated in December and early next year before
another surge in spring and early summer.”
The $8,000 first time buyer tax credit has been extended until April 30. It has also been
expanded to include many buyers who are not buying their first home, with a credit of
as much as $6,500, depending on income.
Low interest rates are also fueling the rise in sales. Last week, Freddie Mac
reported 30-year fixed-rate mortgages fell to an average of 4.83 percent, near
an all-time low.
In the U.S., total housing inventory at the end of October fell 3.7 percent, to a 7 month
supply, down from an 8 month supply in September. Unsold homes on the market are
now down 14.9 percent from a year ago, to the lowest level in two and a half years.
Source: New Mexico Business Weekly