The first-time home buyers tax credit combined with low mortgage rates and declining prices, created quite a boost to home sales in October. Home sales were at their highest level in 2 1/2 years, nearly 37 percent above their bottom in January, but still 16 percent below their peak in 2005.

In the Midwest, sales were 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. Experts say the boost was a direct reflection of the homebuyer tax credit, which had been due to expire on Nov. 30 but has since been extended until spring.

Pending home sales have risen for nine months in a row, a first for the series of the index since its inception in 2001, according to the National Association of Realtors.