WASHINGTON–Sales of existing homes declined 2.7 percent in August compared to the previous month, to a seasonally adjusted annual rate of 5.1 million units, according to figures provided by the National Association of Realtors.
An NAR statement said the August total was 3.4 percent higher than existing home sales in August 2008, and that existing-home sales had risen 15.2 percent in the period of April to July. Lawrence Yun, NAR chief economist, said the first-time buyer tax credit has brought buyers into the market and permitted them to take advantage of “very favorable affordability conditions.” Yun was referring to the $8,000 first-time home-buyer tax credit, part of the American Recovery and Reinvestment Act of 2009.
Yun also cautioned that the August dropoff “demonstrates that we can’t take a housing rebound for granted.” He added that, with foreclosures expected to rise over the next 12 months, an extension of the tax credit is “critical to preserve incentives for financially qualified buyers to enter the market.”