There has been an increase in the number of pending home sales for three months in a row, due largely
to the recent Federal Tax Credit along with the availability of affordable housing.
The Index of Pending Home Sales, which projects forward based on contracts signed during the preceding month, was up 6 percent to 110.9 in April. It was 104.6 in March and is up by 22.4 percent from April of 2009's 90.6. These numbers follow increases of 7.1 percent last March and 8.3 percent during February.
Pending home sales are now at the uppermost point since October of 2009 when the index hit 112.4. This was during the time when purchasers were hurrying to buy before the first deadline for the tax incentive.
This information shows contracts, but not escrow closings. Contracts generally take one to two months to close.
Apparently the tax credit, along with an increase in buyer confidence and low interest rates, has contributed to the upswing in sales. The housing market appears to be trending upward and may continue to do so, even without the tax credit, as long as new jobs are created.
