Pending Home Sales Up 6.7 %
The real estate group's Pending Home Sales Index, which is based on contracts signed in April, rose 6.7 percent from its March reading to 90.2. April's data also showed a 3.2 percent improvement from a year ago.
"Housing affordability conditions have been at historic highs, but now the $8,000 first-time buyer tax credit is beginning to impact the market," Lawrence Yun, NAR's chief economist, said in a statement. "Since first-time buyers must finalize their purchase by November 30 to get the credit, we expect greater activity in the months ahead, and that should spark more sales by repeat buyers."
The Northeast saw the greatest improvement, with a 32.6 percent gain over the previous month, but still lags well behind other regions.
While positive, Yun cautions that the index is subject to greater variability due to its relatively small sample size. There is also an increasing time lag between contract signings for pending purchases and closings on existing home sales.
The real estate group also reported improvements in their Housing Affordability Index, which measures whether a family with the median U.S. income has enough money to buy a median-priced home. A family earning $60,900 could afford a $296,800 home, with a 20 percent down payment, in April, according to the report. The median price of a single family home was $169,800 for that month.