Recovery In The Housing Market?

In this video, Robert Freedman of Realtor ® Magazine and Lawrence Yun, NAR Chief Economist, discuss the recently released Pending Home Sales Index. As an indicator that the housing market is improving, the Pending Home Sales Index increase 3.2 percent in the past two months. The Index has a drawback in that it is based on homes under contract that have not actually sold. With lending guidelines tighter, the possibility exists that some of these contracts will not close. The positive news of this report is that demand for homes have increased. With numerous factors influencing demand including historically low interest rates and lower home prices, Lawrence Yun believes the $8,000 tax credit is positively influencing first time home buyers. Especially considering that 53 percent of home contracts in March were first time home buyers. An example of this increase is seen in the South as the Index increased 7.7 percent over this time a year ago. With increased demand, housing prices should increase in the coming months. Source: Pending Home Sales Rise, Housing Affordability Near Record National Association of Realtors May 4, 2009