Homes sales increase across US

October 14, 2008 by OPPE News

America is seeing a surge in pending homes sales activity as property buyers take advantage of lower home prices, the National Association of Realtors (NAR) said.

The Pending Home Sales Index, which is based on contracts signed in August, jumped 7.4 percent to 93.4, the group said.

NAR also noted this means the index is at its highest point since June 2007, when it was recorded at 101.4.

The stats suggest America’s real estate market is picking up again as investors cash in on cheaper properties.

NAR chief economist Lawrence Yun said:

“What we’re seeing is the momentum of people taking advantage of low home prices, with pending home sales up strongly in California, Nevada, Arizona, Florida, Rhode Island and the Washington DC region.”

Mr Yun also said the housing market would see more solid improvement in 2009.

NAR figures also indicated existing home sales may touch 5.04 million this year and 5.41 million in 2009.

Following national declines of five to eight per cent this year, home prices are projected to increase two to three per cent next year.