The index rose 12% when compared to July 2008. 

Since hitting a low of 80.4 in January of this year, the index has increased every month.

Lawrence Yun, NAR chief economist, said the housing market momentum has clearly turned for the better.  “The recovery is broad-based across many parts of the country.  Housing affordability has been at record highs this year with the added stimulus of a first-time buyer tax credit,” he said.

The jump in pending home sales is likely driven in part by the government’s $8,000 first time homebuyer credit. The program expires on November 30 and so first-time homebuyers are rushing to make purchases before the deadline.

Pending home sales were the strongest in the West, with the index increasing 21.5% over last year. Meanwhile, the Northeast was the weakest with pending home sales index dropping 21% from last month.