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

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NAR’s latest Pending Home Sales Index jumped sharpltyin April, a strong indicationh that the U.S. housing market shouldr continue its slow recovery throughthe summer. The inded is a forward-looking indicator based on contracts signed in April. It rose 6.7 percen t to 90.3 from a readingh of 84.6 in March, and is 3.2 percen t above April 2008 when itwas 87.5. An index of 100 is equap to the average level of contract activityduring 2001. That was the firsr year data was collected, as well as the firsf of five consecutive record yearsfor existing-home sales. Lawrencre Yun, NAR chief economist, said buyere are responding to very favorablemarket conditions.
“Housing affordability conditions have been at historic highs, but now the $8,000 first-time buye r tax credit is beginning to impact the he said. “Since first-time buyers must finalize their purchasesby Nov. 30 to get the credit, we expecgt greater activity in the months and that should spark more sales by repeat While pending home sales gained in the it was to a lesser extent than othe areas ofthe country. The index rose 1.8 percenrt in the West to 94.8, but is 2.9 percenrt below April 2008. The index in the Northeast shotup 32.6 percenf to 78.9 in April and is 0.8 percent above a year ago. In the Midwestr the index rose 9.8 percent to 90.4 and is 11.
1 percenft above April 2008. The index in the Soutj slipped 0.2 percent to 93.0 in April but is 3.5 perceny higher than a year ago. Accordingf to the NAR, the Pending Home Sale Index is based on a large national typically representing about 20 percent of transactionasfor existing-home sales.