A bit of good news from the National Association of Home Builders:
The Pending Home Sales Index (PHSI) by the National Association of Realtors® (NAR) indicated that contracts signed on existing homes gained 4.3% in August, following a 4.5% rise in July. This signals that the payback period associated with the expiration of the home buyer tax credit is now behind us.
The upturn in the PHSI was consistent across all regions except the Northeast, with solid growth in the South (6.7%) and West (6.4%) and a modest gain in the Midwest (2.1%). The Northeast declined 2.9%.
The PHSI is based on contracts signed, while existing home sales are based on closings. The NAR advises that existing home sales typically lag the PHSI by one to two months.