Pending Home Sales Rise Unexpectedly in July

9/1/09- Seasonally adjusted index of sales contracts signed in July has risen to the highest levels in 2 years to 97.6 according to The National Association of Realtors (NAR). This reading is 12% higher than the same month last year.   Analysts predict sales will likely drop once the first time home buyer tax credit expires in Nov. Around 2 million first time home buyers have taken advantage of the soon to expire tax credit.

The rebound in sales has also provided the first nationwide increase in home prices in more than 3 years according to S&P Case-Shiller index. Home prices are still down some 30% since mid 2006. For buyers on the sidelines, this has brought some off the bench to start the buying process.

[Source : AP]