Pending Home Sales Increase in March

The spring homebuying season may be gaining momentum, according to the latest data from the National Association of Realtors.

The number of contracts signed, which is measured by the company's Pending Home Sales Index, reached 102.9 in March. This is a 5.3 percent increase over the previous month's 97.7, according to the report. This growth is even larger when compared with March 2009, when pending sales were 85.

The South experienced the greatest gains in March, with sales jumping by 12.7 percent in comparison to February's figures.

"Clearly the homebuyer tax credit has helped stabilize the market," Lawrence Yun, chief economist for the NAR, said. "In the months immediately following the expiration of the tax credit, we expect measurably lower sales," Yun added.

The federal homebuyer tax credit was available to first-time and repeat purchasers who signed a contract by April 30. These individuals have through June 30 to close on the deal. Improved employment numbers may be necessary for further gains, according to the report.

Pending home sales reported in 2001 serve as the basis for the NAR's figures. Figures above 100 indicate that more contracts were signed than during that year.