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Pending Home Sales Index Hits Highest Level Since April 2010

by Peter Thomas Ricci

pending-home-sales-index-nar-real-estate-recovery-housing-recovery

The Pending Home Sales Index increased 9.8 percent in November, rising to its highest mark since 2010.

The Pending Home Sales Index showed considerable signs of life in November, increasing 9.8 percent year-over-year and hitting its highest level in more than two years, according to the latest readings by the National Association of Realtors.

Indeed, not since April 2010 has the Pending Home Sales Index been higher, when homebuyers rushed to buy residences ahead of the expiration of the homebuyer tax credit. Excluding the tax credit period, it’s been nearly six years since Pending Home Sales Index was at this level.

Pending Home Sales Index – Good Sign for 2013

Other details from NAR’s report included:

  • This is the third straight month of monthly increases, and on a yearly basis, the Pending Home Sales Index has risen for 19 consecutive months.
  • On a regional basis, sales were up 15.2 percent year-over-year in the Midwest and 13.9 percent in the South.
  • The Pending Home Sales Index measures contract activity, so based on its November findings, NAR is anticipating existing-home sales to increase 8 to 9 percent in 2013, above the 10 percent gain of 2012 over 2011. Additionally, NAR expects existing-home price to rise 4 percent in 2013, after a 7 percent increase in 2012.

All that data leads to one central idea, one we’ve been reporting on with encouraging consistency the last couple of days – there are numerous signs that real estate professionals can look forward to a solid 2013. From continued investment in residential construction, to marked improvement in asking prices, to the best new single-family home sales in more than two years, the signs of the real estate recovery seem to be all around us.

Carmen Rodriguez, a Realtor with Coldwell Banker Residential Brokerage in Edgebrook, said she’s anticipating further activity now that the presidential election is a thing in the past.

“I do expect there to be increased activity in the spring and throughout 2013,” she said. “The instability and insecurity that usually accompanies a federal election cycle will be well behind us as the spring market approaches. Questions about the budget, whether folks like them or not, will have been answered, so the fears associated with not knowing will be abated. I think we’re headed in a good direction and, really, taking a long view, real estate is always a good bet because it is an inherently optimistic asset.”

And coincidentally, Rodriguez has blogged for us before on the relationship between real estate and politics; read her thoughts on the subject here.

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