The National Association of Realtors Pending Home Sales Index, a forward looking indicator based on contracts signed in February, rose 2.1% to 82.1 from a reading of 80.4 in January. Although below the February 2008 number of 83.3, this indicates a positive trend. The index in the South rose 4.4% to 85.8; this is only 0.1% below a year ago.

Also in February, the NAR’s Housing Affordability Index rose to a new high. The national index rose 0.9% points to a record high of 173.5. Using consistent values and assumptions over time, the relationship between home prices, mortgage interest rates and family income is the most favorable since tracking began in 1970.

Lawrence Yun, NAR chief economist, expects homes sales to gain momentum in the second half of the year with first time buyers absorbing a lot of the excess inventory and housing price stabilization in most markets by the year end.

How are you preparing for a return of more normal market conditions? Will you be doing the same things the same way you were before the downturn? Have you begun to re-engage your referral sources? Trained those left on your staff about any new regulations and requirements? Reduced your overhead in a sustainable way? This downturn gives you the opportunity to re-engineer your practice for a better future.