Octoberâ€™s Existing-Home Sales Showcase Ample Unit GainsNov 23 2009
November 23, 2009 - The National Association of Realtors® (NAR) reported that for the month of October there has been another surge upward in existing-home sales. Existing-home sales, which were at 5.54 million units in September, has now risen to 6.10 million units, and is likely being driven up by the first-time homebuyer tax credit extension that was implemented earlier in the month.
"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," NAR chief economist, Lawrence Yun, explains.
Not only is the tax credit an indicator for the increase in existing-home sales, but as are the historically low interest rates, which for a 30-year fixed, are currently below the five percent mark. Housing affordability, which heavily correlates with current home prices, is also propelling existing-home sales.
"With the abnormal drop in home prices over the past few years, the price-to-income ratio has fallen below the historic trend line," Yun continued to state. "This is adding to the buying power of the typical family, with affordability conditions this year at the highest on record dating back to the 1970."