Contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors® (NAR). The Pending Home Sales Index is at the highest level since June 2007.NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit. Buyers have little time to act because they must complete the transaction by November 30, 2009, to qualify for the credit.
In the South, pending home sales activity rose 3.1% to an index of 103.8 in July and is 12.0% above July 2008.
Unless congress acts to extend the homebuyer tax credit (and I hope they do for ALL homebuyers, not just first timers), it won't be surprising to see a sales drop during the first quarter of 2010. However, the fundamentals of the housing market and the economy are trending up, so home sales are expected to pick up in the second quarter of 2010.
Source: RISMedia
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