Home sales hit a 2 1/2 year high based on October's housing numbers according to the National Association of Realtors (NAR). Home sales produced a 10.1% month over month gain last month driven by the expiring federal tax credit for first time buyers as well as historically low interest rates.
The paragraph in this story on Reuters.com that caught our eye was from NAR's chief economist, Lawrence Yun "Home prices are almost there. We are seeing less of a decline in house values," He said the Realtors group expected strong sales for November, related to the federal tax credit.
Prices continued to be affected by foreclosures which typically sell for 15% - 20% below other homes as well as a surge in first time buyers buying at the low end of the market taking advantage of the Federal tax credit.
Full article at Reuters.com