Pending homes sales have been steadily rising over the past four consecutive months. 

The rise is due partly to the fact that the housing is becoming more affordable and buyers are discovering that now is the perfect time to buy a home.  The First-time buyer tax credit is also boosting home sales. 

The Pending Home Sales Index is a forward-looking projection based on the number of contracts that were signed in a particular month.  In May, this index rose .1 percent to 90.7 from an upward shift from 90.6 in April.  The last time this index increased four consecutive months was in October 2004. 

Lawerence Yun, who is the chief economists for the National Association of Realtors, warns that there might be delays in the number of contracts that actually go into closing.  “Closed existing-home sales have improved but are coming in lower than expected because some contracts are delayed  or falling through from the application of new appraisal rules for many transactions.”  Yun went on to say “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards.  Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy.” 

Call your local realtor today in order to take advantage of these first time home-buyer tax credit.  There has never been a better time to buy.