Washington - Existing home sales surged more than 10 per cent in the United States in October to their highest level since February 2007, according to figures released Monday. The monthly data by the National Association of Realtors (NAR) beat expectations and served as a good sign for a housing market that helped spark the world economy's worst recession in a generation.
Sales of existing homes jumped to 6.1 million units last month, up 10.1 per cent from September and 23.5 per cent from October 2008, according to the NAR.
The surge is largely due to government tax credits being offered to first-time home buyers, one of a series of massive public spending measures designed to revive demand in the struggling US economy. The popular programme was initially due to expire November 30, but earlier this month was extended and expanded until the end of April.
NAR chief economist Lawrence Yun said he expected a similar spike in home sales in November as many homeowners - uncertain whether the government's tax credits would be extended - rushed to meet the November 30 deadline. December will likely be weaker again.
The US housing market lay at the root of the US financial crisis: A decline in home prices that began in mid-2006 sparked a record number of foreclosures by homeowners who could ill-afford their mortgages, which in turn forced Wall Street firms into bankruptcy.
