NAR expects stimulus bill to boost sales

WASHINGTON – The National Association of Realtors yesterday said that some improvement is projected for existing-home sales in the coming months thanks to the recently passed federal housing stimulus bill.
The association said that it expects broader gains seen by the fourth quarter as buyers take advantage of the Housing and Economic Recovery Act’s provisions, which includes a $7,500 tax credit to first-time home buyers who purchase and move into a home by July of next year.
In its report the association said that the Pending Home Sales Index rose to 89 in June from an index 84.5 in May. While the June figure marks an improve, it remains 12.3 percent below June 2007’s index, which stood at 101.4.
In a statement, Lawrence Yun, the association’s chief economist, said sales have been in a pattern of rising and falling within a fairly narrow range.
“The vacillation of data from one month to the next indicates a housing market in transition,” he said. “The rise in pending home sales was broad-based with all four regions showing gains. This is welcome news because a rise in contract activity is necessary for an overall housing recovery.”
According to the association, the index in the Northeast increased 3.4 percent to 79.6 but is 15.4 percent below June 2007. In the Midwest, the index rose 1.3 percent in June to 79.6 but is 13.3 percent below a year ago.
The National Association of Realtors is the nation’s largest trade association, with more than 1.3 million members in all aspects of residential and commercial real estate. Additional information is available at www.realtor.org.