ASSOCIATED PRESS:  Fri., Aug. 21, 2009

Home sales soar 7.2% in July

 First-time buyers rush to take advantage of tax credit

WASHINGTON - The U.S. housing market is improving quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years, as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that home sales rose 7.2% to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the highest level of sales since August 2007.

"The housing market, with today's strong rise in sales, has decisively turned for the better," said Lawrence Yun, the trade group's chief economist.

Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year. In places like San Diego and Orlando, buyers are snapping up foreclosed properties at deep discounts, and real estate agents are pressing banks to release more foreclosures onto the market.

First-time buyers must complete their sales transactions by the end of November to take advantage of a tax credit of 10% of the purchase price, up to $8,000. The real estate industry is lobbying Congress to get the credit extended.