Pending home sales up for 10th straight month

Globe Staff

The number of Massachusetts single-family homes put under agreement in April was up 25 percent over the same time last year, and pending sales for condominiums were up 22 percent, the Massachusetts Association of Realtors said today.

The association views pending sales as a potential indicator of where the local housing is heading. April is the 10th straight month that the number of both single-family homes and condominiums put under agreement had increased over the year before, the association said in a press release.

One of several reasons why the market seems poised for a rebound is a temporary federal program that provides first-time home buyers with an $8,000 tax credit, and existing owners who have been in their home for at least five consecutive years with a credit of up to $6,500. But that program is expiring. To be eligible, buyers had to have a binding purchase contract by May 1; they still must close on the home by June 30.

The big question now is what happens to the market now that the tax credit has expired.

In a statement, association president Kevin Sears said: “With the tax credit expiring at the end of the month, we were not surprised to see a big increase in the number of homes put under agreement in April. Pending sales activity in the next few months will give us a good indication of how stable the market is post tax credit.”

The association is scheduled to release its completed sales numbers for April later this month. To see a Globe story about March housing data, please click here.