Pending home sales rise in February as tax credit deadline looms

April 05, 2010 02:27PM

As the homebuyer tax credit deadline approaches, nationwide pending home sales rose in February, according to the latest report from the National Association of Realtors. NAR’s Pending Home Sales Index, which is based on signed contracts, clocked in at 97.6 for the month, up 8.2 percent from 90.2 in January and 17 percent from 83.2 in February 2009. In the Northeast, pending home sales rose 9 percent to 77.7 during the month, which was an 18.9 percent increase over the same period last year. “The rise in buyer contact activity may signal the early stages of a second surge of home sales this spring,” said NAR chief economist Lawrence Yun, noting that the improved numbers could be the result of buyers taking advantage of the tax credit before it runs out. “We need a second surge to meaningfully draw down inventory and definitively stabilize home values,” Yun added. TRD

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