U.S. home resales posted the largest monthly increase in at least 10 years last month as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that U.S. home sales rose 7.2% to a seasonally adjusted annual rate of 5.24 million last month, 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.

Economists had expected a 2.3-per-cent increase in sales, compared with a gain of 3.6% in June.

The median sales price was US$178,400, down 15% from US$210,100 in the same month last year.

Ben Bernanke, chairman of the U.S. Federal Reserve, said Friday the U.S. economy was on the verge of a long-awaited recovery after enduring the global financial crisis and recession.

Economic activity in both the U.S. and around the world appears to be “levelling out” and “”the prospects for a return to growth in the near term appear good,” Bernanke said in a speech at an annual Fed conference in Jackson Hole, Wyo.

“The economic recovery is likely to be relatively slow at first, with unemployment declining only gradually from high levels,” Bernanke added.

IE