According to the National Association of Realtors® (NAR) contract activity for pending home sales has risen for six straight months, a record not seen in the history of the index since it began in 2001. The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 3.2 percent to 97.6 from 94.6 in June, 12.0% higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. “The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.
By Region
Northeast: The Pending Home Sales Index declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008.
Midwest: The index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago.
South: Pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008.
West: The index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.
