The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April 2009, rose 6.7 % to 90.3 from a reading of 84.6 in March 2009, and is 3.2%. when it was 87.5.

Lawrence Yun, NAR chief economist, says buyers are responding to very favorable market conditions.   “Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market,” he says. “Since first-time buyers must finalize their purchase by November 30 (2009) to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers.”

Geographical Breakdown of Pending Home Sales Index

Northeast: The index shot up 32.6 % to 78.9 in April and is 0.8 % above a year ago.
Midwest: The index rose 9.8 % to 90.4 and is 11.1 % above April 2008.
South: The index slipped 0.2% to 93 in April but is 3.5% higher than a year ago.
West: The index rose 1.8 % to 94.8 but is 2.9 % below April 2008.

According to the latest report by National Association of Realtors®, pending homes sales rose based on contracts signed in March 2009.   NAR’s  Pending Home Sales Index showed March 2009 contracts rose 3.2% from February’s level of 82.   This index is a forward-looking index based on contracts signed not closed sales and is based on the national market.   Additionally March 2009′s 84.6% was 1% increased from a year ago’s March 2008 index of 83.7%.

Lawrence Yun, NAR’S chief economist, stated “This increase could be the leading edge of first-time buyers responding to very favorable affordability conditions and an $8,000 tax credit, which increases buying power even more in areas where special programs allow buyers to use it as a down payment,” he says. “We need several months of sustained growth to demonstrate a recovery in housing, which is necessary for the overall economy to turn around.”

Here is a breakdown of pending home sales by region:

• South: rose 8.5 percent to 93.2 in March and is 7.7 percent above a year ago.
• West: increased 3.9 percent to 93.1 and is 1.7 percent higher than March 2008.
• Northeast: fell 5.7 percent to 59.5 in March and is 24.1 percent below a year ago.
• Midwest: slipped 1 percent to 82.3 but is 8.2 percent higher than March 2008.