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

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NAR’s latest Pending Home Sales Index jumpef sharplyin April, a strong indication that the U.S. housingv market should continue its slow recovery throughbthe summer. The index is a forward-looking indicator basede on contracts signedin April. It rose 6.7 percent to 90.3 from a readinh of 84.6 in March, and is 3.2 percenr above April 2008 when itwas 87.5. An indec of 100 is equal to the average level of contract activityduringt 2001. That was the first year data was collected, as well as the firstr of five consecutive record yearsfor existing-home sales. Lawrencd Yun, NAR chief economist, said buyers are respondingf to very favorablemarket conditions.
“Housing affordability conditions have been athistoric highs, but now the $8,0090 first-time buyer tax credit is beginning to impacgt the market,” he said. “Since first-time buyers must finalizse their purchaseby Nov. 30 to get the credit, we expecy greater activity in the months and that should spark more sales by repeat buyers.” While pending home sales gained in the West, it was to a lesserf extent than other areas of the country. The indezx rose 1.8 percent in the West to but is 2.9 percent below Aprill 2008. The index in the Northeast shotup 32.6 percentf to 78.9 in April and is 0.8 percenft above a year ago. In the Midwesyt the index rose 9.8 percent to 90.
4 and is 11.1 percent above April 2008. The index in the Southj slipped 0.2 percent to 93.0 in Aprilo but is 3.5 percent higher than a year ago. According to the NAR, the Pendingg Home Sales Index is based on a largernational sample, typically representing abouf 20 percent of transactions for existing-homee sales.