WASHINGTON–The index for pending home sales rose for the third month in a row in April.
The index reached 90.3, 6.7 percent ahead of the March reading of 84.6 and 3.2 percent up from April 2008’s 87.5. Compiled by the National Association of Realtors, the index is based on the number of home-sale contracts signed in each month. Lawrence Yun, NAR’s chief economist, said the steady climb in this indicator owes itself to the improved affordability of housing nationwide, and the $8,000 tax credit for first-time home buyers that is part of the American Recovery and Reinvestment Act of 2009.
An NAR statement also observed that the association’s housing affordability index “is in record territory.” This indicator rose to 174.8 in April, the second highest monthly reading ever, behind only the 176.9 reported for January.