Pending home sales rise

Pending home sales -- signed contracts for home purchases -- increased again in March, according to the National Association of Realtors.

The Pending Home Sales Index rose 5.3% to 102.9 from 97.7 in February, and is 21.1% above the March 2009 figure of 85.0. This follows an 8.3% increase in February.

“Clearly the home buyer tax credit has helped stabilize the market. In the months immediately following the expiration of the tax credit, we expect measurably lower sales,” said Lawrence Yun, NAR chief economist. “Later in the second half of the year, and into 2011, home sales will likely become self-sustaining if the economy can add jobs at a respectable pace, and from a return of buyer demand as they see home values stabilizing.”

The PHSI in the Northeast declined 3.3% to 75.1 in March, and is 27.2% higher than March 2009. In the Midwest the index increased 1.2% to 98.9, and is 18.5% above a year ago. In the South, the index rose 12.7% to 121.2, and is 28.3% higher than March 2009. In the West, the index increased 1.9% to 99.9, and is 8.8% above a year ago.