Pending Home Sales Surge 6% in April

Washington, DC, June 2, 2010--Pending home sales rose 6% in April after an upwardly revsed 7.1% increase in March, the National Association of Realtors reported Wednesday.

The index covers signed contracts, not final sales.

The federal government has been subsidizing home sales with tax credits of up to $8,000 for qualified buyers who signed a sales contract by the end of April. The sale must close by June 30 to qualify.

The index is up 22% compared with April 2009.

Pending home sales have risen for three consecutive months and are at the highest level since last October.

"The housing market has to get back on its own feet and now appears to be in a good position to return to sustainable levels even without government stimulus, provided the economy continues to add jobs," said NAR chief economist Lawrence Yun.

NAR expects a net of 1 million additional jobs in the second half of this year and about 2 million in 2011.