October 23, 2009

WASHINGTON, D.C. – US existing home sales in September jumped to their highest level in more than two years. The looming expiration of the $8,000 first-time buyers tax credit is believed to be a major motivating factor.
Purchases grew 9.4 per cent to an annual rate of 5.57 million units, according to the National Association of Realtors. The median price fell at the slowest pace in a year.
The first-time buyers tax credit has been a tremendous success so far, and is set to expire on November 30. Sales are widely expected to experience a slowdown when the tax credit expires.
Sales activity was up from 5.1 million units in August, and 4.49 million units in January. Sales were up 9.2 per cent, but median prices were down 8.5 per cent year-over-year.
Standing inventory now sits at 7.8 months, the lowest level it has been at since March 2007.
The share of homes on the market which were being sold due to foreclosure also decreased, from 31 per cent in august to 29 per cent in September.
Purchases were up in all four regions of the country, led by the West with a 13 per cent increase. The Midwest saw its sales rise 9.6 per cent, while the South was up nine per cent and the Northeast was up 4.4 per cent.
Single family home sales were up 9.4 per cent, while multi family sales were up 9.7 per cent.