Sales of existing homes surged last month to level not seen in three years, signaling a comeback from the market’s downturn since the Great Depression.

Buyers rushed to complete sales before the original expiration date of the federal tax credit for first time home buyer, which was earlier scheduled to expire November 30. The tax credit was extended and expanded to help the housing market recovery.

The National Association of Realtors estimated that about 2 million homebuyers have taken advantage of the credit projects another 2.4 million will avail of the tax credit which is set to expire middle of next year. More than half of all transactions last month were done by first time homebuyers which pushed sales up 44 percent above last year's levels.

Sales are now up 46 percent from the bottom in January, but still 10 percent below its peak more than four years ago.

The median sales price was $172,600, down 4.3 percent from a year earlier, and up 0.2 percent from October.