It might be fuelled by the tax credits, but it's good news nonetheless: pending home sales have risen again for the 8th month in a row. That's the longest continual rise since 2001, reports the National Association of Realtors (NAR).

Q3's Pending Home Sales Index, published by NAR, indicates that in September 2009 contracts signed rose 6.1% to 110.1, up from 103.8 in August. This is a large improvement from 2008's September index when it stood at 90.9. For perspective, the highest the index has recorded was in December 2006 at 112.8.

Sales increased from the second quarter in 45 states and the District of Columbia; 28 states and D.C. saw double-digit gains. Year-over-year sales were higher in 32 states and D.C.

That's a lot of action for new home sales. It seems that the government's recent first-time buyer tax credit has motivated consumers. Lawrence Yun, NAR's chief economist is quoted stating, "It's given buyers the confidence they needed to get off the fence and take advantage of extremely affordable housing conditions. The buying conditions this year are the most favorable on record dating back to 1970, but the tax credit is allowing buyers to set aside any reservations about waiting for a better deal." And now that the tax credit has been extended to include existing homeowners there should be only increased positive moment in the housing market.

According to NAR, approximately 3 million renters are now financially well-qualified to buy a median-priced home. Yet home buyers still face challenges: it's a difficult battle as mortgages have become more difficult to secure and the process of purchasing a home more complicated. Despite instability in the market, it's obvious that the temptation of a large tax return and rock-bottom prices cannot be ignored: home buyers are ready to take advantage of a promising market.