NAR predicts improved home sales

WASHINGTON, Aug. 7 (UPI) -- The new housing stimulus bill could lift U.S. home sales by the fourth quarter, the National Association of Realtors said Thursday.

"With a tax credit now available to first-time home buyers, increases in home sales could be sustained with the momentum carrying into 2009," NAR chief economist Lawrence Yun in a statement.

NAR President Richard F. Gaylord said provisions in the bill to help existing homeowners was "helpful."

"But a greater lift to the economy should come from higher mortgage limits, enhancements to the FHA loan program and the first-time home buyer tax credit," he said.

"With roughly 2.5 million first-time home buyers taking advantage of the temporary tax credit, existing-home sales are likely to rise 7 percent to 5.51 million in 2009 from a expected total of 5.15 million this year," the statement said.

NAR released its forward-looking Pending Home Sales Index Thursday, which showed improvements in all four U.S. regions.

In the South, the index jumped 9.3 percent to 92.4. In the West, the index rose 4.6 percent to 101.0. The Northeast index rose 3.4 percent to 79.6, while the Midwest index rose 1.3 percent in June to 79.6.