Pending Home Sales Hit 5-Year Peak
Nationwide pending home sales rose to their highest levels since March 2007 in October, according to the National Association of Realtors.
The NAR's Pending Home Sales Index, based on contract signings, spiked 13.2 percent over last year to 104.8. That's also a 5.2-percent increase from September's 99.6.
Pending home sales have increased year-over-year for 18 consecutive months. Aside from a few jumps during the tax credit period, October pending home sales were the highest since March 2007, when the index also hit 104.8.
NAR Chief Economist Lawrence Yun said buyers are responding to favorable market conditions. "We've had very good housing affordability conditions for quite some time, but we're seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive."
Yun said contracts varied based on regions, with the Midwest seeing the biggest surge in activity and Hurricane Sandy slowing sales in the Northeast. The West also saw declines.
The index slipped 0.1 percent in the Northeast to 79.2 in October, but that's still 13.3 percent higher than a year ago.
Image credit: FreeDigitalPhotos.net.
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