Pending Home Sales Rise for Third Straight Month
The Pending Home Sales Index rose 1.7% in November to reach a high not seen since April 2010, according to a National Association of Realtors (NAR) report released today.
"Even with market frictions related to the mortgage process, home contract activity continues to improve," said NAR Chief Economist Lawrence Yun in a statement. "Home sales are recovering now based solely on fundamental demand and favorable affordability conditions."
In addition to marking the third straight month of month-over-month increases, November's numbers also further solidify long-term trends. Compared to last November, the newest index results represent a 9.8% gain. On a year-over-year basis, pending home sales have been on the rise for the past 19 months.
The index does not reflect closings and is based on signed contracts for existing single-family homes, condos, and co-ops. Looking ahead, existing home sales are expected to increase 8% to 9% in 2013 (following a 10% gain expected for all of 2012) accompanied by a 4% rise in median home price (following a rise of more than 7% in 2012), according to the NAR.
Today's news follows close behind a reported 4.4% rise in new home sales for November and the news that mortgage rates remain near record lows.
The article Pending Home Sales Rise for Third Straight Month originally appeared on Fool.com.
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