<div id="subtitle">Contracts to buy homes rise slightly, a sign of steady sales heading into spring</div><div><p>The number of people preparing to buy a home rose slightly in December, a positive sign heading into the spring home buying season.</p><p>The National Association of Realtors said Tuesday its seasonally adjusted index of sales agreements rose 1 percent from November to December to a reading of 96.6. That was a bit lower than the 97.1 level analysts expected, according to Thomson Reuters.</p><p>The index has risen for nine out of the past 10 months as buyers work to take advantage of an $8,000 first-time homebuyer tax credit.</p><p>The credit had been set to expire Nov. 30 before Congress extended it to April 30. Lawmakers also added a $6,500 credit for current homeowners.</p><p>The pending home sales index fell 16 percent from October to November, as activity temporarily died down after the first-time buyer credit was extended. The index is up nearly 11 percent from December 2008.</p><p>"These swings are masking the underlying trend, which is a broad improvement over year-ago levels," said Lawrence Yun, the Realtors' group chief economist.</p><p>The real estate industry hopes the recovery will continue, and Mike Larson, a real estate analyst with Weiss Research, said the index "sets the stage for a more positive spring selling season."</p><p>But the industry has to overcome significant challenges, such as high unemployment, rising foreclosures and tight lending standards.</p><p>"The result? We'll likely just muddle through instead of witness a V-shaped recovery like those that followed previous housing busts," Larson said.</p><img src="http://admatch-syndication.mochila.com/images/ad.gif?aid=68318650&bid=informcom" /></div><div id="copyright"><div>

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