According to the National Association of Realtors, the number of home sales from November to December increased by 1 percent to a reading of 96.6.  This number is still a bit lower than the 97.1 level that analysts expected but this is a positive sign for the spring home buying season.  The index rose for 9 out of the past 10 months as buyers take advantage of the $8,000 homebuyer tax credit.

The tax credit was supposed to end on November 30 but was extended by the congress until April 30.  Lawmakers also added a $6,500 credit for current homeowners.

The real estate industry hopes that this slight increase in home sale will continue until the market has fully recovered.  This index can possibly set the stage for a better and positive spring selling season.  But the housing market is not the only problem the country is facing, there is also a high rate of unemployment, increase number of foreclosed homes and tight lending standards.