Source: Orlando Business Journal
The pending home sales index rose 3.2 percent to 84.6 in March, according to the National Association of Realtors. This is a slight increase over March 2008, when the index was 83.7. The index was also up from February’s reading of 82, making the increase the second straight month in a row.
According to Lawrence Yun, the Association’s chief economist ,“This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment” . He said, “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”
A pending home sales index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales, according to the association.
