The Pending Home Sales Index, a forward-looking indicator based on signed contracts has risen consistently over the past three months.  In April, the Index rose 6.7% to 90.3 from 84.6 in March and is 3.2% above the 87.5 reading in April 2008.  In the Midwest the index rose 9.8% to 90.4 and is 11.1% above April 2008.

Analysts attribute this to a combination of factors, including favorable market conditions, a high housing affordability index and the first-time buyer tax credit. Lawrence Yun, NAR chief economist notes “Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”