For the first time in five years, the highest rise in September for sales amount of existing homes was reached. According to the National Association of Realtors, from August to September, the amount increased by 5.5%, making an annual rate of 5.18 million units. Sales were also 7.8% in favor from September of last year.

Of course, analysts are trying not to put much stock on this occurrence, as they feel it is a result of conditions brought on before the current problems in the market, which increased the possibility of a recession. The problems in the market were destroying consumer confidence, and unemployment was was rising. Sal Guartieri, an economist with BMO Capital Markets, also said that “In October, mortgage applications sank to six-year lows,...This suggests house sales, like the rest of the economy, fell off a cliff because of the worsening credit crunch.”

In other news, the average home sale price is still down, leveling at $191,600, which is 6% less then last year. Analysts feel that home prices could go even lower, potentially leveling out at 10% due to the never ending masses of foreclosed homes being shoveled into the market. The NAR also estimates that 35-40% of the homes sold, were distressed sales (foreclosures or short sales).

Alan Greenspan, the former Federal Reserve Chairman, also feels that the market slump will continue for many more months to come, saying in front of Congress last Thursday that the country had experienced a “once-in-a-century credit tsunami.”