By DAVID STREITFELD
Published: October 23, 2009
Foreclosures are looming, unemployment is surging and the economy remains in the tank — but home buyers are apparently undaunted.
Sales of existing homes in September were at their highest level in more than two years, the National Association of Realtors reported Friday. Sales were up 9.4 percent from August, to a seasonally adjusted level of 5.57 million units.
“A blockbuster month,†said analyst Michael D. Larson at Weiss Research.
In a healthy sign for sellers, the number of homes on the market dropped significantly. Inventory fell to 7.8 months of supply from 9.3 months in August. In September 2008, the supply was 10.1 months.
The agents’ association attributed many of the September sales to people eager to take advantage of the $8,000 tax credit for first-time buyers before it expires next month. The association is lobbying heavily to have the credit extended or even enhanced through at least next summer.
The Obama administration seems lukewarm to the idea. Housing and Urban Development Secretary Shaun Donovan told the Senate Banking Committee this week that “these proposals can be very expensive†and that the end of the credit would not cause a “catastrophic decline†in the housing market.
Some analysts were not that impressed by the September numbers. They noted that sales have been so weak during the last few years, and the range of government assistance programs so extensive, that it was surprising more homes were not sold.
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