KANSAS CITY, Mo. (AP) -- Home sales in the Midwest surged in October as first-time home buyers sought to beat the initial deadline for a federal tax credit and difficult market conditions last year made comparisons favorable.
The National Association of Realtors said Monday there were 111,000 resales in the Midwest, up 26 percent from October last year and the best showing in the country. The median sale price for the region rose 1 percent -- also leading the country -- to $146,600.
Nationally, home resales rose 21 percent from a year ago, without adjusting for seasonal factors. The median sale price fell 7 percent to $173,100, the Realtors association said.
Economists and local real estate experts say the tax credit, worth up to $8,000 for first-time home buyers, is responsible for some of the boost in sales. The tax credit was originally supposed to end this month, but Congress recently agreed to extend it to cover contracts signed by April 30.
The Midwest lacked the big increases in home prices and frenzied selling seen along the coasts so the region was expected to have an easier time recovering. But the Midwest relies heavily on manufacturing and the unemployment rate has risen to 10 percent in October, well above 6.6 percent a year ago.
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