Pending home sales rose 3.2 percent last month, which is the second straight month of positive growth. This information is based on signed home sale contracts that haven't yet gone to closing, but are scheduled to do so in the next 60 to 90 days.
It appears that first time home buyers are responding to the favorable affordability conditions, and the $8,000 tax credit.
Mortgage applications are also up five percent nationwide last month, according to the Mortgage Bankers Association. Rates are still at record lows.
The affordability index also continues to hover near its all time best.
The most important of all is that consumer psychology is turning positive on housing. When the Gallup polling organization asked a national sample of Americans last month whether this is a "good time to buy a house," 71 percent said "yes." That's an increase of 18 percent in a year, and the highest level in four years.
Published: May 12, 2009
Realty Times
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