We sat down with NAR Chief Economist Lawrence Yun to talk about the big jump in Pending Home Sales. And the news just keeps getting better and better.

What we’re seeing is a boost in the Pending Homes Sales Index for the month of April, meaning more homes are heading to closing. It’s a number that has grown steadily, right across the country, for the last three months.

Yun says there are three reasons for this: one, low prices; two, incredibly low interest rates; and three, the new federal tax credit for first time home buyers.

Of those three, Yun says he thinks first time home buyers are behind the surge in sales. He says he’s heard from Realtors all across the country that not only are they getting more phone calls from people interested in using the tax credit for first time buyers,, but that they are also seeing more foot traffic at open houses from first time buyers. Even California is beginning to see increased activity in their markets!

Affordability is very high right now, so that people who felt they were priced out of the market during the boom years, are taking advantage of this buyer’s market now.

Yun says, if you’ve got the financing, you should strongly consider buying now. There’s no point in waiting to see if prices are going to drop more, because in some markets, they are already beginning to bounce back. Not only that, but if you’re buying for the first time, you must close on your house before December first if you want to claim that tax credit.

Yun says things will keep improving through the end of this year, maybe even into the beginning of 2010. Maybe there really is a light at the end of the tunnel!

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Housing Market