US Pending Home Sales Index Rises

There is a spot of good news on the horizon for the US housing market, according to new data released by the National Association of Realtors.
 
Pending home sales rose in November and marked the highest levels reported in the last 19 months. The Pending Home Sales Index rose by 7.3%. The only other time that the index has been at these levels over the past 19 months, was when homebuyers rushed to market in advance of the deadline for the Homebuyer Tax Credit.
 
Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. "Housing affordability conditions are at a record high and there is a pent-up demand from buyers who've been on the sidelines, but contract failures have been running unusually high. Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage," he said.
 
"November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead," Yun added
 
There had been some controversy recently with the reporting of data from the NAR, and their methodology and accuracy had been called into question. These figures apparently are not subject to the same methodology, and therefore not under scrutiny.
 
Changes in the Index varied across the country, with strength reported in some regions and weakness emerging in others; most notably, pending home sales surged in the West, with the Index up 14.9% in November.
There is a spot of good news on the horizon for the US housing market, according to new data released by the National Association of Realtors.
 
Pending home sales rose in November and marked the highest levels reported in the last 19 months. The Pending Home Sales Index rose by 7.3%. The only other time that the index has been at these levels over the past 19 months, was when homebuyers rushed to market in advance of the deadline for the Homebuyer Tax Credit.
 
Lawrence Yun, NAR chief economist, said the gains may result partially from delayed transactions. "Housing affordability conditions are at a record high and there is a pent-up demand from buyers who've been on the sidelines, but contract failures have been running unusually high. Some of the increase in pending home sales appears to be from buyers recommitting after an initial contract ran into problems, often with the mortgage," he said.
 
"November is doing reasonably well in comparison with the past year. The sustained rise in contract activity suggests that closed existing-home sales, which are the important final economic impact figures, should continue to improve in the months ahead," Yun added
 
There had been some controversy recently with the reporting of data from the NAR, and their methodology and accuracy had been called into question. These figures apparently are not subject to the same methodology, and therefore not under scrutiny.
 
Changes in the Index varied across the country, with strength reported in some regions and weakness emerging in others; most notably, pending home sales surged in the West, with the Index up 14.9% in November.
 
Via Propertywire.ca

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Sherif Nathoo

Sherif Nathoo

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CENTURY 21 Leading Edge Realty Inc., Brokerage*
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