Diffident Increase Seen by the Realtors in Sales Activity

February 7, 2010
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Realtors see modest increase in sales activity

The amount of people planning to buy a home increased a little in December, a positive sign heading into the spring home buying season.

The National Association of Realtors stated on Tuesday that its seasonally adjusted index of sales agreements increased 1 percent from November to December to a reading of 96.6. That was a bit lower than the 97.1 level analysts expected, according to Thomson Reuters.

The index has gone up for nine out of the past 10 months as buyers work to take advantage of an $8,000 first-time homebuyer tax credit.

The credit had been set to expire November 30 before Congress extended it to April 30. Lawmakers also added a $6,500 credit for current homeowners.

The awaiting home sales index decreased 16 percent from October to November, as activity temporarily died down after the first-time buyer credit was extended. The index is up to nearly 11 percent from December 2008.

The real estate industry hopes the recovery will continue, and Mike Larson, a real estate analyst with Weiss Research, said the index “sets the stage for a more positive spring selling season.”

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