Realtors index: Pending home sales jump sharply - Phoenix Business Journal:

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NAR’s latest Pending Home Sales Index jumped sharplyuin April, a strong indication that the U.S. housingb market should continue its slow recoverty throughthe summer. The indesx is a forward-looking indicator base d on contracts signedin April. It rose 6.7 percentg to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when itwas 87.5. An indedx of 100 is equal to the average level of contract activit yduring 2001. That was the first year data was as well as the first of five consecutive record yearsfor existing-home sales. Lawrence Yun, NAR chievf economist, said buyers are responding to very favorablemarkett conditions.
“Housing affordability conditions have been athistorivc highs, but now the $8,000 first-time buyer tax credit is beginning to impacgt the market,” he said. “Since first-time buyers must finalize their purchaseby Nov. 30 to get the we expect greater activity in themonthss ahead, and that should spark more sales by repeaty buyers.” While pending home sales gained in the it was to a lesse r extent than other areas of the The index rose 1.8 percent in the West to but is 2.9 percent below April 2008. The indecx in the Northeast shotup 32.6 percent to 78.9 in Aprilo and is 0.8 percenft above a year ago. In the Midwesrt the index rose 9.8 percent to 90.4 and is 11.
1 percenr above April 2008. The indexs in the South slipped 0.2 percent to 93.0 in Aprikl but is 3.5 percent highere than a year ago. According to the NAR, the Pending Home Sales Index is based on a largenationa sample, typically representing about 20 percent of transactionzs for existing-home sales.