Existing home sales are on the increase, with first-time buyers driving the surge, according to a report from the National Association of Realtors. The sales volume in this housing sector has been growing substantially over the past six months. The increasing sales volume applies to single-family homes, townhomes, condominiums and co-ops. Sales jumped by 9.4 percent in September, to an adjusted annual rate of 5.5 million units. Sales activity is now at the highest level in over two years.
"Much of the momentum is from people responding to the first-time buyer tax credit which is freeing many sellers to make a trade and buy another home," said Lawrence Yun, NAR's chief economist. "We are hoping the tax credit will be extended and expanded, offering the credit to at least the middle of next year. The rising sales momentum needs to continue for a few additional quarters until we reach a point of self-sustaining recovery."