Pending Home Sales Increase For Eighth Consecutive Month

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Pending home sales rose for a record straight eighth month in September, according to a report released by the National Association of Realtors on Monday, with the pending home sales index rising to its highest level since December of 2006.

The report showed that the pending home sales index rose 6.1 percent to 110.1 in September from a reading of 103.8 in August. The increase by the index came as a surprise to economists, who had expected the index to edge down 0.1 percent.

With the stronger than expected monthly growth, pending home sales were up 21.2 percent compared to the same month a year ago, the largest annual increase on record.

Lawrence Yun, NAR chief economist, said, "What we're witnessing is a rush of first-time buyers trying to beat the expiration of the tax credit at the end of this month."

"Home values will stabilize sooner rather than over-correcting," Yum added. "That, in turn, will mean wealth stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery."

The continued increase in pending home sales reflects notable growth in the West and Midwest, where pending sales rose by 10.2 percent and 8.1 percent, respectively. Pending home sales in the South also rose 4.9 percent, while pending sales in the Northeast slipped 2.0 percent.

Pending home sales rose for a record straight eighth month in September, according to a report released by the National Association of Realtors on Monday, with the pending home sales index rising to its highest level since December of 2006. The report showed that the pending home sales index rose 6.1 percent to 110.1 in September from a reading of 103.8 in August. The increase by the index came as a surprise to economists, who had expected the index to edge down 0.1 percent. (Market News Provided by RTTNews)