Home sales in October increased 10.1 percent and hit a seasonally-adjusted annual rate of 6.1 million units. In developing its statistics on home sales, the NAR takes into account single-family homes, townhomes, condos and co-ops. When compared to the same month last year, sales of existing homes are up 23.5 percent.
Lawrence Yun, chief economist for the NAR, said that many people may have rushed to buy a home prior to the expiration of the first-time homebuyer's credit, which was scheduled to end in November.
"With such a sale spike, a measurable decline should be anticipated in December and early next year before another surge in spring and early summer," Yun said.
The federal government recently extended the tax credit until April 30 of this year. Through the credit, first-time buyers can get $8,000 for purchasing a home, while current homeowners who are looking to change primary residences could earn a $6,500 credit.
