Existing home sales surge 16.1 percent

It was the first jump in existing home sales in four months.

Sales of previously owned homes jumped 6.8 percent, up 16.1 percent over March 2009, according to a report released Thursday by the National Association of Realtors. Purchases grew to a 5.35 million annual rate up from a 5.01 million pace in February. 

Broad home sales recovery nationwide is encouraging because sales have stayed above last year’s levels for nine straight months and inventory has trended down from year-ago levels for 20 consecutive months, said Lawrence Yun, chief economist with NAR. 

“With home sales stabilizing, a revival in home buying confidence will likely help the housing market get back on its feet even as the tax credit impact disappears,” Yun said. 

Yun also noted that foreclosures feeding into inventories were selling quickly at lower price levels to first-time homebuyers. 

The Obama administration’s tax credit is good through the end of April and on sales completed through June.