According to the National Association of Realtors existing home sales surged in October to the highest level in more than 2-1/2 years. NAR reported today that existing home sales rose 10.1% last month to a seasonally adjusted annual rate of 6.1 million units

Sales activity of existing homes, by far the largest segment of the market, is the highest since February 2007, when the annual rate was 6.55 million.

Most economists attribute the gain to an influx of buyers seeking to capitalize on an $8,000 tax credit that the Obama administration made available for qualified first-time home buyers. The credit, originally scheduled to expire at the end of November, has recently been extended to April 30 and expanded to include more home buyers.

Most who follow the market closely feel that we are likely to see a decrease in the volumes of sales of existing homes until Spring at which time the numbers should climb back up.

In another good sign for the market the available supply of inventory has dropped to 7 months. The caveat here is that more foreclosed homes will come on the market, tending to push up the available supply.

Remember all markets, like politics, are local. Whenever you know of someone looking to buy or sell in the greater Boston area be sure to email or call me. I promise to take excellent care of them!