Washington, DC – January 27, 2011 – (RealEstateRama) — Pending home sales improved further in December, marking the fifth gain in the past six months, according to the National Association of RealtorsÂ®
The Pending Home Sales Index,* a forward-looking indicator, increased 2.0 percent to 93.7 based on contracts signed in December from a downwardly revised 91.9 in November. The index is 4.2 percent below the 97.8 mark in December 2009. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.
Lawrence Yun, NAR chief economist, credits good affordability conditions and economic improvement. â€śModest gains in the labor market and the improving economy are creating a more favorable backdrop for buyers, allowing them to take advantage of excellent housing affordability conditions. Mortgage rates should rise only modestly in the months ahead, so weâ€™ll continue to see a favorable environment for buyers with good credit,â€ť he said.
â€śIn the past two years, home buyers have been very successful, with super-low loan default rates, partly because of stable home prices during that time. That trend is likely to continue in 2011 as long as there is sufficient demand to absorb inventory,â€ť Yun said. â€śThe latest pending sales gain suggests activity is very close to a sustainable, healthy volume of a mid-5 million total annual home sales. However, sales above 6 million, as occurred during the bubble years, is highly unlikely this year.â€ť
The PHSI in the Northeast increased 1.8 percent to 73.9 in December but is 5.3 percent below December 2009. In the Midwest the index rose 8.0 percent in December to 84.6 but is 5.1 percent below a year ago. Pending home sales in the South jumped 11.5 percent to an index of 101.9 and are 1.7 percent above December 2009. In the West the index fell 13.2 percent to 105.8 and is 10.7 percent below a year ago.
The National Association of RealtorsÂ®, â€śThe Voice for Real Estate,â€ť is Americaâ€™s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
# # #
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
NOTE: Existing-home sales for January will be reported February 23 along with revisions for the past three years, and the next Pending Home Sales Index will be released February 28. Fourth quarter metro area home prices and state home sales will be published February 10; release times are 10:00 a.m. EST.
Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section. Statistical data, tables and surveys also may be found by clicking on Research.
Walter Molony 202/383-1177
- Mortgage Problems Continue to Hamper Pending Home Sales
WASHINGTON, Oct. 2 /PRNewswire-USNewswire/ -- Pending sales of existing- homes activity will be dampened near-term as mortgage disruptions continue to impact the housing market, according to the National Association of Realtors(R). ...
- Pending Home Sales Continue Recovery, Gradual Improvement Seen in 2011
Washington, DC - December 30, 2010 - (RealEstateRama) --Pending home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the National Association of RealtorsÂ®...
- Strong Rebound in Pending Home Sales
Washington, DC - December 2, 2010 - (RealEstateRama) -- Pending home sales jumped in October, showing a positive uptrend since bottoming in June, according to the National Association of REALTORS...
- NAR: Another Monthly Gain for Pending Home Sales
The Pending Home Sales Index, a forward-looking indicator based on contracts signed, increased 0.6 percent in October, marking the second consecutive monthly gain, according to the NATIONAL ASSOCIATION OF REALTORS...
- Existing-Home Sales to Hold in Narrow Range, then Begin Upward Trend
WASHINGTON, February 07, 2008 - A continuation of soft market conditions is forecast for existing-home sales in the months ahead, with improvement expected by the second half of this year if loan limits are increased, according to the latest forecast by the National Association of Realtors...
- ERC and NCLR Investigation Uncovers Housing Discrimination against Latinos in Three Major Metropolitan Areas
- Leahy, Collins Introduce Bipartisan Legislation to Combat Youth Homelessness & Trafficking
- RealtorsÂ® Support FHFA Director Wattâ€™s Efforts to Promote Affordable Homeownership
- MiNeighborhood Program Accepting Applications Through March 27
- HBI Graduates Receive NAHB Chairmanâ€™s Award and Shirley McVay Wisemen Award for Exceptional Promise at 2015 NAHB International Buildersâ€™ Show
- Home Staging Can Help Sell Home for More, RealtorsÂ® Say
- Bill Introduced to Expand Housing Programs to 1 Million Children, Families
- IN CASE YOU MISSED ITâ€¦ Tampa Bay Times: â€śAtwater: Stress tests may instill confidence in insuranceâ€ť
- Rep. Royce Introduces Pay Back the Taxpayers Act to Prevent GSEs Funding Housing Advocacy Groups
- NAREE Issues a Call for Entries for 65th Annual Journalism Competition
- Counting Every Veteran on the Way to Ending Homelessness