US Pending Home Sales Fall 16%

The National Association of Realtors said today that its Pending Home Sales Index which measures contracts signed within the past sixty days, fell 16 percent to 96.0. This is the first drop in the index in nine months and is largely due to the expiration of a tax credit that provides up to $8,000 for first-time buyers.

Because of the popularity in the tax credit however, it has since been extended until mid-2010, and this, along with other strong signals from the housing sector, has industry experts remaining optimistic.

“The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own,” said Lawrence Yun, NAR chief economist.

“We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”

Reuters

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