NEW YORK (CNNMoney.com) — Contracts for the sale of existing homes rose sharply in February, the National Association of Realtors’ (NAR) said Monday.
In the single-biggest monthly rise since October 2001, pending home sales rose 8.2% in February. Economists were expecting a 1% decrease.
It was also a 17% improvement over February last year. The unexpected increase could indicate demand driven by the federal government’s homebuyer tax credit, NAR said.
Buyers have to ink contracts by the end of April to take advantage of the tax credit, which offers first-time homebuyers up to $8,000, and those who are trading up as much as $6,500.
NAR’s report measures signed real estate contracts, but not completed sales, for existing single-family homes, condos and co-ops. Pending home sales are considered a forward-looking indicator since many of the contracts don’t result in completed transactions for many weeks or months.
