Housing market revived in April

In a sign that the housing market may be set for a rebound, the pending home sales index increased 6.3% in April, the National Association of Realtors reported today. The increase in the index, which measures signed sales contracts, is the highest since October but 13.1% lower than April 2007. Pending home sales increased in all four regions, with the Midwest recording a 13% rise, the West jumping 8.3%, the South increasing 4.6% and the Northeast inching up 2%. The increase was attributed to a drop in home prices that has attracted bargain hunters, according to Richard Gaylord, president of the Chicago-based NAR. “It appears that more buyers are realizing they can take advantage of a favorable combination of mortgage interest rates, home prices and family income,” said Mr. Gaylord, who is also a broker in Long Beach, Calif, with RE/Max International Inc. of Denver.