According to the National Association of Realtors (NAR), in November existing home sales rose 7.4 percent over October, and were 44.1 percent higher than the pace in November 2008. Current sales remain at the highest level since February 2007.
The rise in sales is attributed to a rush of first-time buyers who wanted to close before Nov. 30, the original tax credit deadline. In fact, a NAR practitioner survey shows firsttime buyers purchased 51 percent of homes in November. And, another surge is expected in the spring as buyers take advantage of the expanded tax credit.
Total housing inventory at the end of November declined 1.3 percent to a 6.5-month supply at the current sales pace. The last time there was a lower supply of homes on the market was April 2006, when it was at a 6.1-month supply.
For the second month in a row, sales have risen in all price classes from a year earlier. Prior to October, the only consistent gains were in the lower price ranges.
(reprinted from a Weichert Realtors publication to sales associates)
