Unexpected Climb of NAR's Pending Home Sales Index

The National Association of Realtors has reported that pending home sales have increased 5.2%, which was mostly unexpected by some due to the dramatic drop of home sales in July....

Was it that unexpected???? Not really, in my honest opinion. In our local market, we saw a gigantic increase in pending home sales during the month of March. No big surprise since buyers in most markets took advantage of the tax credit - especially at the last minute. Simply stated, those who were able to purchase sapped up our existing inventory and those who weren't...didn't. However, they did go home and work on those issues needed to increase their score, saved a little more money....and 5 to 6 months later.... VOILA!!!

I know that there's chatter about another homebuyer tax credit, but the peaks and valleys brought on by the first one is just too much for my skittish nature. I think that it's time for us to allow the market to correct itself.