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Market Rebound Upon Us?

There is encouraging new evidence that the floundering housing market has begun to rebound. A proverbial “perfect storm” of favorable home buying conditions, particularly for first-time home buyers, is spearheading a buying surge in a seller’s market.

According to the latest survey from the National Association of Realtors, home sales are up in all four major regions of the country. In October alone, sales of single family homes, townhouses, condominiums, and co-ops swelled by 10%, and are currently 24% higher than just one year ago.

Dr. Lawrence Yun, chief economist for the National Association of Realtors, says the primary reason for the current home sales surge is the original November 30th expiration date of the $8,000 federal tax credit for first time home buyers; which has since been extended through June 30th, 2010. The tax credit coupled with interest rates under 5% has resulted in home affordability approaching it’s most favorable point since 1970.

These complimentary conditions have even lead to bidding wars in some southwestern states, Florida, and the suburbs of Washington D.C. for entry-level homes as prospective buyers try to take advantage. Read the full article here.