WASHINGTON — Home sales increased for the second month in a row during October, climbing to the highest level in 2.5 years, driven in large part by first-time buyers seeking to take advantage of an expiring tax credit.
According to the National Association of Realtors, home sales nationally in October were up 37% from their low in January of this year, although they remain 16% below their peak in late 2005. The NAR said there is currently a seven-month supply of homes on the market nationally, and in some markets "price wars" have re-emerged.
The NAR further reported that resales rose 10.1% to a seasonally adjusted annual rate of 6.1 million in October, from a downwardly revised pace of 5.54 million in September. It was the biggest monthly increase in a decade. The median sales price was $173,100, down 7% from a year earlier and off roughly 2% from September.
