Pending-home sales increased in November for the third
straight month and reached the highest level in more than two years, according
to the National Association of Realtors.
NAR’s Pending Home Sales Index, which measures the number
of homes that are under contract, rose 1.7% in November. That’s up 9.8% from
last November 2011.
The index hasn’t been this high since April 2010 when
buyers were rushing to beat the deadline for the home buyer tax credit. With
the exception of several months affected by tax stimulus, the last time there
was a higher reading was in February 2007.
Home sales are on a sustained uptrend even though home
buyers face challenges getting mortgages, said NAR Chief Economist Lawrence
Yun. “Even with market frictions related to the mortgage process, home contract
activity continues to improve. Home sales are recovering now based solely on
fundamental demand and favorable affordability conditions,” he said.
Yun predicted existing-home sales will rise 8% to 9% in
2013 to approximately 5.1 million, following a 10% gain expected for all of
2012. The median existing-home price is projected to rise just over 4% in 2013,
after rising more than 7% in 2012, he added.
Regional pending home sales
The number of homes under contract improved in all regions of the country except the South, where they held steady. Here’s how the regions performed:
The number of homes under contract improved in all regions of the country except the South, where they held steady. Here’s how the regions performed:
- Northeast: Up 5.2%
in November and 15.2% above November 2011.
- Midwest: Up 0.1% in
November and 15.2% above November 2011.
- South: Unchanged in
November and 13.9% above November 2011.
- West: Up 4.2% in
November, but 3.2% below November 2011 with inventory constraints limiting
sales.
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