WASHINGTON (AP) — Home resales for October are projected to rise to the highest level in more than two years as first-time buyers, anticipating that a tax credit would soon expire, rushed to beat the clock.
Sales are expected to show a 1.4 percent increase to a seasonally adjusted annual rate of 5.65 million, up from 5.57 million in September, according to economists polled by Thomson Reuters. If accurate, it would be the best month for home sales since July 2007.
The National Association of Realtors' report is scheduled for release Monday.
The tax credit of up to $8,000 for first-time owners was originally set to run out on Nov. 30, but Congress renewed it earlier this month and broadened its reach. People who have owned their current homes for at least five years can now claim a tax credit of up to $6,500 for a home purchase. To qualify, buyers must sign a purchase agreement by April 30.
But sales are likely to drop over the winter as buyers hibernate for a few months without the looming tax credit deadline, said Pat Lashinsky, chief executive of online real estate brokerage ZipRealty Inc.
The new deadline means that "we're going to see some good activity coming out of the spring," he said.
Over the summer, the housing market started to rebound from the worst downturn in decades, aided by aggressive federal interventions to lower mortgage rates and bring more buyers into the market.
But experts forecast that prices will fall again. Most say they will hit a new low next spring, perhaps falling another 5 to 10 percent, as more foreclosures get pushed onto the market.
Much uncertainty remains, especially if unemployment keeps rising from the current level of 10.2 percent. And the government's ability to prop up housing is limited.
For example, the Federal Reserve is likely to curtail its effort to push down mortgage rates next year. If rates then rise too high, it would make home purchases less affordable and dampen housing demand.
"When we do kick those crutches out from under the housing market, will it be able to stand on its own?" said Mark Fleming, chief economist with real estate information company First American CoreLogic. "It's really hard to tell."
Foreclosures also are a growing problem. The Mortgage Bankers Association said last week that a record-high 14 percent of homeowners with a mortgage were either behind on payments or in foreclosure at the end of September. Driven by rising unemployment, fixed-rate loans made to borrowers with good credit accounted for nearly 33 percent of new foreclosures last quarter. That compares with 21 percent a year ago.
The worst damage is still concentrated in the states hardest hit from the start: Florida, Nevada, California and Arizona. Together, they accounted for 43 percent of new foreclosures.
Breaking News
Home sales likely rose again in October
- Breaking News
-
-
Woman found in "house of horrors" in Navarro County
- Police chase ends at Holly Oaks apartment complex
-
Suburban strikes school bus on Fort Worth Highway
A woman was taken by air ambulance to a Metroplex hospital around 4 p.m. this afternoon after she drove into the back of a school bus.
-
Winter blast on the way
Parker County residents are bracing for one of the coldest winter storms this year.
Today, Tuesday and Wednesday will mark one of the coldest days this winter with a wind chill factor reaching 0 degrees Matt Mosier, metrologist for the National Weather Service, said. -
Jack Borden Dies
-
City rescinds boil water notice
The Texas Commission on Environmental Quality has given the City of Weatherford approval to discontinue the boil water notice issued Monday due to the pipe failure at the water plant.
“Our system has taken the necessary corrective actions to restore adequate pressure, disinfectant levels, and bacteriological quality, and has provided TCEQ with the testing results that indicate the water no longer requires boiling,” states a release from the city.”
-
Restaurants given OK to open for business
Restaurants and hotels were given the go-ahead to open today at 3 p.m. provided they have enough water pressure to flush toilets and boil water for consumption.
Hotels were given instructions not to use ice machines.
“We’re keenly aware of the burden we placed on businesses, especially with the downturn in the economy,” Assistant City Manager Robert Hanna said in a 4 p.m. press conference. “The more people work with us to refrain from using water, the quicker we can lower the restrictions.”
- Partial water service anticipated, press conference set
-
Water runs out across city
Homes and businesses across Weatherford are losing their water supply as the result of a major water line break.
Around midnight city officials were alerted that a 24-inch water pipe in the clear well at the water treatment plant had pulled loose. While city crews were on hand immediately to start working on the break, the expert engineers needed for this type of incident could not be reached until around 6 a.m., said Assistant City Manager Sharon Hayes.
- Pipe failure will cause water outage
- More Breaking News Headlines
-
Obama Gives Education Waivers to 10 States
Giffords Aide to Run for Her Seat
LA School in Sex Abuse Scandal Reopens
Winter Slamming North Asia, Parts of Europe
Syrian Forces Renew Bombardment of Homs
States, Banks Reach Foreclosure-abuse Settlement
Raw Video: Italy's Mount Etna Bursts Into Life
Greeks March; Angry Despite Debt Deal
Raw Video: U.S. Pullout Celebration
Raw Video: Annual Empire State Building Run-Up
Man Killed in Courthouse Shootout
Air Force Airlines: Leaders Get Polished Service
Ga Girl Fights Off Kidnapper at Walmart
Nevada Highway Patrol, City Settle Beating Case
Homs Bombardment Continues, Global Outcry Grows
Raw Video: Dog Rescued From Icy Colo. Water
Skip the Coffee Cup and Inhale Your Caffeine Fix
