Strong rebound in pending home sales
Pending home sales jumped 10.4 percent in October, showing another positive
uptrend since bottoming in June, according to the National Association of
Realtors®.
The Pending Home Sales Index (PHSI), a forward-looking indicator, rose to
89.3 based on contracts signed in October from 80.9 in September. The data
reflects contracts and not closings, which normally occur with a lag time of
one or two months.
The data also surprised economists who had expected a decline in pending
home sales. However, Lawrence Yun, NAR chief economist, says excellent
housing affordability conditions drew in more homebuyers.
“It is welcoming to see a solid double-digit percentage gain, ” Yun says.
“
The housing market clearly is in a recovery phase and will be uneven at
times, but the improving job market and consequential boost to household
formation will help the recovery process going into 2011.”
Near term, Yun expects home sales to continue climbing from their cyclical
low this past summer.
Posted: 2 December 2010
Source: Florida Realtors
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