September proved to have one of the largest monthly increases in 26 years for home resales, due in large part to first-time home buyers rushing to make their purchase before the tax-credit expires on November 30. The NAR (National Association of Realtors) reported that sales were up 9.4 percent, for a rate of 5.57 million to the 5.1 million in August.
Although sales are up nationwide, prices are still down, reflecting all the foreclosures and short sales that are still flooding the markets. Los Angeles, San Diego and Las Vegas top the foreclosure sales. Â More foreclosures are anticipated, as unemployment continues to rise, therefore, prices could fall even further. Supply will soon surpass the demand.
As the housing market is still a major concern, Congress is considering extending the tax credit for first-time buyers so that it includes all home buyers. But this would come at the cost of an estimated $16.7 billion.
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