Often known as the “forward-looking” indicator, the Pending Home Sales Index rose 6.1 percent to from 103.8 percent in September to 110.1 percent in August. This is 21.2 percent higher than it was in September 2008.

The index is at its highest level since December 2006; the gain from a year ago is the largest annual increase on record.

NAR’s chief economist, Lawrence Yun said “What we are witnessing is a rush of first-time home buyers trying to beat the expiration of the tax credit at the end of this month. Home values will stabilize sooner rather than overcorrecting. That, in turn, will mean wealth-stabilization for the vast number of middle-class families and lay the foundation for a durable economic recovery.”