Pending Home Sales Post Strong Gains in October

 

The Pending Home Sales Index, which reflects contracts signed but not closed, jumped 10.4 percent in October from September and was 9.2 percent above October 2010, according to the NATIONAL ASSOCIATION OF REALTORS® (NAR). NAR chief economist Lawrence Yun believes the improved contract activity is a sign of better times ahead for the housing market. “We hope this indicates more buyers are taking advantage of the excellent affordability conditions. Many consumers are recognizing that home buyers in the past two years have had one of the lowest default rates in history. Moreover, continued inventory declines are another healthy sign for the housing market,” Yun says. 

Pending home sales posted big gains in three of the four regions of the country. In the Northeast, the index surged 17.7 percent in October and was 3.4 percent above October 2010. Pending home sales jumped 24.1 percent in the Midwest in October and was 13.2 percent above a year ago. In the South, pending home sales rose 8.6 percent in October and they were 9.7 percent above October 2010. The index slipped 0.3 percent in the West but was 8.1 percent above a year ago. WED, NOV 30, 2011