Contract activity for pending home sales nationally has risen for six straight months, a pattern not seen in the history of the index since it began in 2001, according to the National Association of Realtors®.
The Pending Home Sales Index, a forward-looking indicator based on contracts signed in July, increased 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.
Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better. "The recovery is broad-based across many parts of the country. Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit," he said.
According to our local Multiple Listing Service (MLS) statistics Chittenden County numbers have not been quite as consistent. While local pending home sales peaked at 112 in May (one less than 2008) we have lagged behind last years numbers for 5 out of seven months (see chart). There has not been a large gap but, a gap none the less proving once again that Vermont and Chittenden County usually lag behind the nation in just about any statistic.
Time will tell if our rebound catches up with the rest of the nation but, we seem pretty happy in our office just coming off two near record months of sales. The majority of the sales still seem to be first time home buyers wanting to beat the November deadline and cash in on the $8,000 federal tax credit. So, December will certainly be a telling month.