Sales of previously owned homes rose 7.6 percent to a seasonally adjusted annual rate of 5.77 million, the National Association of Realtors said Monday.
The sales increase sparked a rise in home prices. The median price for a new home rose to $173,100, up 4 percent from a year ago.
But the improvements aren't likely to last. The tax credit is now gone. And economists caution that Americans are facing so many financial obstacles that falling rates alone won't be enough to lift the housing market.
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