The number of pending home sales in the United States has risen for six straight months, according to the National Association of Realtors (NAR). That hasn’t happened since the NAR began tracking pending sales in 2001.
The Pending Home Sales Index increased 3.2 percent in July, to 97.6 from 94.6 in June. It was 12 percent higher for July, 2009 than the previous year, when it stood at 87.1. The highest level for the index was in June, 2007 when it reached 100.7. The index is based on contracts to purchase that are signed in a month.
Lawrence Yun, chief economist for the NAR, 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,” he said in recent comments.
Yun continued, noting that “Other buyers are taking advantage of low home values before prices turn higher. Nationally, the typical mortgage payment now takes less than 25 percent of a middle-income family’s monthly income to buy a median priced home, with payment percentages so far in 2009 being the lowest on record dating back to 1970. As long as home buyers stay within their budget, mortgage payments will be very manageable.”
The Pending Home Sales Index in the Northeast declined 3.0 percent to 78.8 in July but is 4.7 percent higher than July 2008. In the Midwest the index slipped 2.0 percent to 88.1 but is 8.1 percent above a year ago. In the South, pending home sales activity rose 3.1 percent to an index of 103.8 in July and is 12.0 percent above July 2008. In the West the index jumped 12.1 percent to 112.5 and is 20.0 percent above a year ago.
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