More than 8% Rise in Pending Home Sales
Home sales had been far less than steady in the United States as of late due to the economic upheaval of the past 2 years. The especially hard hit banking and home building sectors have been struggling to crawl back from the brink of what many had feared could be a total collapse in the housing market. Winter has traditionally been a low performance season for the home building sector and 2009 proved to be no different, but the number of buyers who are signing on the dotted line to purchase homes that have been previously owned have risen sharply in recent months, exceeding analyst expectations. This bodes well for the housing sector as federal incentives appear to be spurring buyers to make their offers where they might have hung back in tighter times. Home buyers have also been motivated by fears of mortgage rates potentially rising in the near future. According to reports coming from the National Association of Realtors, the index of sales agreements, which is adjusted each season, rose 8.2 per cent at the beginning of 2010. The group is viewing this as a real surge in home sales for the coming season.
The index was first begun in 2001 so the score would need to be at 100 to be equal to the housing sales activity for that first year. Currently, the reading stands near 97.6, but some economists believe that it may need to fall before it rises once again. While a growth season is expected, the post tax season is definitely easier on realtors due to the level of disposable income most households have available after receiving their tax returns.