High interest in US real estate

Another jump in real estate deals is recorded as government's deadline looms for first time buyers.

Recent figures issued by the National Association of Realtors (NAR) revealed that for the eighth month in a row a rise was recorded in the Pending Home Sales Index during September, it is over 20% higher than the same month last year.

The Index now at 110.1 is almost back to the level recorded at the end of 2006 before the real estate maket in America suffered the price crash triggered by the global recession.

The reason behind this record gain is beleived to be a stampede of US property buyers trying to purchase real estate before the end of this month so that they qualify for the $8,000 tax credit for first time buyers. Many financial analysts believe figures will fall sharply once the government stimulus ends.

This news together with recent reports of the foreclosure crisis gaining momentum predicts a very shaky future ahead in the recovery of the US real estate market.