Keeping current in the Real Estate industry is a must these days.  With so much negative news in the media, it is great to hear some positive news from the Chief Economist, Lawrence Yun with the National Association of Realtors. 

According to Yun, contract activity for pending home sales has risen for six straight months, a pattern not seen in the history of the index since it began in 2001. The Pending Home Sales Index, is a forward-looking indicator.  The index is at the highest level since June 2007. 

Mr. Yun, 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, and other buyers are taking advantage of low home values before prices turn higher". 

NAR estimates that about 1.8 to 2.0 million first-time buyers will take advantage of the $8,000 tax credit this year, with approximately 350,000 additional sales that would not have taken place without the credit.  Buyers have little time to act because they must complete the transaction by November 30 to qualify for the credit. 

“To ensure that housing has a broad stimulus to the overall economy and stays on sound footing, we’re encouraging Congress to extend the tax credit into 2010, and to expand it to all buyers of primary residences.  The faster we stabilize home prices, the fewer families will face foreclosure and the quicker credit can be extended to other sectors of the economy,”  says Charles McMillan, President of NAR.

It is expected that the existing-home sales will rise through the fourth quarter.  “Unless the tax credit is extended, no one should be surprised to see home sales drop in the first quarter of next year,” said Yun. 

“However, the fundamentals of the housing market and the economy are trending up, and we expect home sales to generally pick up in the second quarter of 2010.  The buyer psychology may be shifting from, ‘Why buy now when I can purchase later, to I don’t want to miss out on a recovery’.”

Existing-home sales for August will be released September 24; the next Pending Home Sales Index will be on October 1.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.  Statistical data, tables and surveys also may be found by clicking on Research.