More Evidence of a Housing Market Rebound

Here's some good news for the first day of September. The National Association of Realtors (NAR) reports today that nationally pending home sales have risen consecutively for the past six months. According to the NAR, the consistent rise is unprecedented in the history of the index, which began in 2001.

"The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased by 3.2 percent to 97.6 from a reading of 94.6 in June and is 12.0 percent higher than July 2008 when it was 87.1. The index is at the highest level since June 2007, when it was 100.7," the NAR reports.

In the Midwest, the index slipped 2.0 percent to 88.1, but is still 8 percent above a year ago. In central Iowa, the real estate market is definitely improving in recent months. Sales are increasing, the average home price is inching back up, and interest rate remain low (5.27% for a 30 year fixed rate as I write this).

Most experts agree that the first-time home buyer tax credit is helping to spur the rebound in the housing market. But unless Congress grants the program an extension, time is running out to take advantage of the credit, which expires Nov. 30, 2009. Contracts must be completed by that date and it can take up to 2 months top complete a home sale in the current market.