NAR: Pending Home Sales Rise

2 12 2009

Pending home sales rose sharply in October, marking the ninth straight month of increases, according to the National Association of Realtors.

NAR’s pending home sales index tracks deals in which a contract has been signed but that has not gone through closing. An index of 100 equals the average level of contract activity in 2001.

October’s index was 114.1, up from 110 in September. It was 32 percent from October 2008, when it stood at 86.6.

The index for the Southeast was 115.4, up 5.4 percent from September and up 32 percent from a year ago.

Lawrence Yun, chief economist for NAR, said the increases reflect a market that is returning to normal.

“Keep in mind that housing has been underperforming over most of the past year,” said Yun. “Based on the demographics of our growing population, existing home sales should be in the range of 5.5 to 6 million annually, but we were well below the 5 million mark before the home buyer tax credit stimulus.”

Source:  National Association of Realtors



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