In October the pending sales index went up dramatically. Buyers were scrambling to sign contracts before the $8,000 credit program expired at the end of the month.
In November, buyer behavior was just the opposite. When Congress extended the credit through next April 30, the pressure was off. Nobody needed to rush to sign contracts.
But….November’s pending sales number was substantially above the previous year anyway! That suggests that even without the extra incentive provided by the tax credit, the home sale market is gaining strength for three basic reasons: huge pent-up demand, low prices and great financing.
