October jump in US real estate

Data from the National Association of Realtors (NAR) revealed a record month for October in which property sales topped more than 10%.

USA real estate is suffering a severe shortage, with the current supply of homes for sale at the lowest number for more than twenty months. Total housing inventory fell by over 3.5% during the last month.

October sales for existing USA real estate was more than 23% above the same month last year and was last seen to be that high toward the beginning of 2007.

Lawrence Yun, head economist of NAR, was pleasantly surprised with the increase and believes many of the sales can be accredited to the first time buyer credit, offered by the government to stimulate the USA real estate market.

The tax credit scheme has now been extended until the end of April 2010 and with this in mind, Mr Yun predicts continued low interest rates will ensure great activity in the coming months.