Pending home sales rise 8.2 percent in February

WASHINGTON - The housing market is coming back from the winter doldrums.

The number of buyers who agreed to purchase previously occupied homes rose sharply in February, far exceeding expectations, a report said Monday.

That's a sign that a second round of government incentives is pushing buyers to make offers before a deadline at the end of this month. Buyers may also be motivated by worries that mortgage rates will climb later this year.

The National Association of Realtors said yesterday its seasonally adjusted index of sales agreements rose 8.2 percent from January to a February reading of 97.6. January's reading was revised slightly downward to 90.2.

On Long Island, there were 1,555 contracts in February, a 28.5 percent jump from the 1,210 recorded in January, usually a slow month for the housing market, according to the Multiple Listing Service of Long Island. Many house hunters have been trying to make the federal home buyers tax credit deadline of April 30 for signed contracts, according to real estate agents and lenders.

The MLSLI numbers are most comparable to those in the NAR report, which does not include figures for Long Island.

The Realtors' report "may signal the early stages of a second surge of home sales this spring," said Lawrence Yun, the trade group's chief economist.

A reading of 100 is equal to the level of sales activity in 2001, when the index started.

Economists surveyed by Thomson Reuters had expected the index would fall slightly to 90.3. The index is considered a barometer for future sales activity because there is typically a one- to two-month lag between a signed sales contract and a completed deal.

Home sales had been sluggish during the winter, partly because shoppers felt less rushed after lawmakers extended the deadline to qualify for a tax credit. First-time buyers can get a tax break of up to $8,000 if they sign a contract by April 30.

"The tax credit is causing them to move quicker," said Kevin Cottrell, co-founder of Kelsey Cottrell Realty Group in St. Louis. "They're not going to turn down an $8,000 credit from Uncle Sam."

The biggest month-to-month increase, nearly 22 percent, was in the Midwest. Sales climbed 9 percent in the South and Northeast, but fell about 5 percent in the West.

With Ellen Yan