According to the National Association of REALTORS®, the pending home sales increased again in March. This affirms that a surge of home sales is unfolding for the spring home buying season.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in March, rose 5.3 percent to 102.9 from 97.7 in February, and is 21.1 percent above March 2009 when it was 85.0. However this has been followed by an 8.3 percent increase in February. The data reflects contracts and not closings, which usually occur with a lag time of one or two months.
According to Lawrence Yun, NAR chief economist, favorable affordability conditions have been working with the tax credit. “Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” he said.