Uptrend Continues in Pendng Home Sales

Pending home sales are up for the fifth consecutive month, the first time in six years for such a streak, according to the National Association of Realtors(R). The Pending Home Sales Index, a forward looking indicator based on contracts signed in June, rose 3.6% to 94.6 from an upward revised reading of 91.3 in May, and is 6.7 % above June 2008 when it was 88.7. The last time there were five consecutive monthly gains was in July 2003.Lawrence Yun, NAR chief economist, said in a combination of positive market factors in fueling the gains. "Historically low mortgage interest rates, affordable home prices and large selection are encouraging buyers who've been on the sidelines. Activity has been consistently much stronger for lower priced homes." he said. "Because it may take as long as two months to close on a home after signing a contract, first-time buyers must act fairly soon to take advantage of the $8,000 tax credit because they must close on the sale by November 30th, 2009."