NAR Sees Resales Boost From Tax Credit

The National Association of Realtors estimates that 2.5 million first-time homebuyers will take advantage of a temporary homebuyer tax credit recently passed by Congress and help push up sales of existing homes in the second half of this year and stabilize house prices. "Home prices are projected to increase 3% to 6% in 2009," NAR chief economist Lawrence Yun said. The Realtors' latest forecast calls for sales of previously owned homes to increase from an annual rate of 4.9 million in the second quarter to a 5.6 million rate in the fourth quarter. The NAR also reported that its pending home sales index rose from 84.5% in May to 89.0% in June as sharply discounted houses in distressed markets attracted multiple buyers. "The pickup in contract signings appears to be broadening, with many affordable markets in mid-America showing year-over-year gains," the NAR said. The NAR can be found online at http://www.realtor.org.