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US home sales unexpectedly higher | US home sales unexpectedly higher |
(about 4 hours later) | |
Sales of previously-owned US homes unexpectedly surged last month to the highest level in more than two years. | Sales of previously-owned US homes unexpectedly surged last month to the highest level in more than two years. |
The National Association of Realtors said sales rose 9.4% to an annual rate of 5.57 million last month, up from a rate of 5.09 million in August. | The National Association of Realtors said sales rose 9.4% to an annual rate of 5.57 million last month, up from a rate of 5.09 million in August. |
Analysts had been expecting a rise in the seasonally adjusted annual rate to 5.35 million in September. | |
The average sale price dropped 8.5% from a year ago to $174,900 (£106,937), the smallest annual drop in 13 months. | The average sale price dropped 8.5% from a year ago to $174,900 (£106,937), the smallest annual drop in 13 months. |
'Temporary dip' | |
Some will see the data as more evidence of a US housing recovery. | Some will see the data as more evidence of a US housing recovery. |
However, much of the gain was attributed to a tax credit that is due to expire on 1 December. | However, much of the gain was attributed to a tax credit that is due to expire on 1 December. |
"Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," said the association's chief economist Lawrence Yun. | "Much of the momentum is from people responding to the first-time buyer tax credit, which is freeing many sellers to make a trade and buy another home," said the association's chief economist Lawrence Yun. |
"We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year." | "We are hopeful the tax credit will be extended and possibly expanded to more buyers, at least through the middle of next year." |
If the tax credit is not extended, then house sales may fall, analysts said. | |
"If the credit is allowed to expire, home sales will probably dip temporarily in the following months," said Brian Wesbury at First Trust Portfolios. | |
"However, the underlying trend will be upward over the next couple of years as potential homebuyers no longer need to fear widespread deep national home price declines." |
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