Pending Home Sales Increase in October
A recent analysis of pending sales of homes rose 10.4 percent in October due to attractive housing affordability conditions, according to an article in the Denver Post. However, activity needs further improvement to reach a healthy level, according to the National Association of Realtors (NAR).
The NAR’s pending home sales index rose to 89.3 in October from 80.9 in September. The 10.4 percent gain is the largest on record, with the data going back to 2001, according to the article written by Ruth Mantell of MarketWatch.
Pending sales reflect contracts signed between homebuyers and sellers, and closing a sale usually takes a few months. A reading of 100 equals the average level of contract activity in 2001.
In October, pending home sales rose in three of four regions, with the index falling 0.4 percent in the West. Nationally, the index is down 20.5 percent from last year when first-time buyers were taking advantage of the tax credit.
According to some experts, October’s jump is simply a blip on the radar screen with the holiday and winter months typically slow seasons. In a separate report, the NAR said home resales fell 2.2 percent in October. Applications for new mortgages rose 7.7 percent in November, according to one report, which suggests potential homebuyers are interested once again.