US home sales rise

Sales of US existing homes surged 7.4 percent in November to the highest level since February 2007 , as buyers rushed to take advantage of tax credits, industry figures showed Tuesday. The National Association of Realtors said sales rose to a seasonally adjusted annual rate of 6.54 million units in November from 6.09 million in October. This is 44.1 percent higher than the depressed levels of November 2008 and best since February 2007. The group said buying was sparked by a rush of first-time buyers to close sales before the original November 30 deadline government tax credits. Congress later voted to extend the credit and expand it to include other home purchases as well. "This clearly is a rush of first-time buyers not wanting to miss out on the tax credit, but there are many more potential buyers who can enter the market in the months ahead," said NAR chief economist Lawrence Yun. "We expect a temporary sales drop while buying activity ramps up for another surge in the spring when buyers take advantage of the expanded tax credit, which hopefully will take us into a self-sustaining market in the second half of 2010. "