December 1st, 2009 by Michael Oliver

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Pending home sales of previously owned homes came out a few hours ago and the numbers are very good for the real estate markets nationwide showing the tax credit is pushing demand into the market.

“Pending home sales in the U.S. homes rose unpredictably to their highest level in 3-1/2 years in October, a survey showed on Tuesday, suggesting the housing market recovery was gaining steam.

The National Association of Realtors said its Pending Home Sales Index, based on contracts signed in October, rose 3.7 percent to 114.1, rising for a ninth straight month. This is the longest streak of gains since the series started in 2001.

Analysts polled by Reuters had forecast pending home sales, which lead existing home sales by one to two months, falling 0.8 percent in October after rising to 110 in September.

The Pending Homes Sales Index surged a record 31.8 percent in October from its year-ago period. The housing market, the main trigger of the worst U.S. recession in 70 years, is recovering from a three-year decline.

Housing construction contributed to economic growth in the third quarter for the first time since 2005.”

Lawrence Yun the chief economist for the National Association of Realtors further on in the report cautioned analyst that this surge in buyers placing contracts on properties should subside over the next month or two as this was driven primarily by the tax credit being extended. He thinks the next couple of months should show the pending contracts down and then another surge just prior to the tax credit expiring in April. I think to some extend that will be true however with my business December has been very busy especially the past week as many buyers are deciding now is the time then need or want to make a home purchase. In the past week or so alone I have signed up over 4 new clients which is generally more common during the summer buying season not during the holidays typically the absolute slowest season for selling homes. This makes me believe the Tucson real estate market is doing better than the majority of other national real estate markets and that more buyers are feeling like they need to make a home purchase now vs. waiting as they had been doing for in some cases years.

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