WASHINGTON — In good news for the economy, sales of existing homes were up 7.4% in November over October, after being up 10% in October over the prior month.
During November, sales of existing homes amounted to annualized rate of 6.54 million units, according to the National Association of Realtors (NAR). The NAR credited much of the rush to first-time buyers seeking to not miss out on a federal tax credit of up to $8,000. That tax credit has since been extended until June 2010.
The November home sales figures exceeded earlier forecasts, and are a significant improvement (45.7%) over the same period one-year earlier. Also contributing to stronger-than-expected home sales have been record-low interest rates, with the average on a 30-year, fixed mortgage at 4.88% during October.
While sales are expected to be lower during December, the NAR said it expects the market will remain strong. One factor causing some concern, however, is a large number of homes currently owned by lenders that are expected to enter the market over the next quarter.
