Pending home sales continue uptrend
Pending home sales improved further in December, marking the fifth gain
in the past six months, according to the National Association of
Realtors® (NAR).
The Pending Home Sales Index (PHSI), a forward-looking indicator,
increased 2 percent on contracts signed in December from November. The
data reflects contracts and not closings, which normally occur with a
lag time of one or two months.
“Modest 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,” says Lawrence Yun, NAR
chief economist.
“In the past two years, homebuyers have been very successful, partly
because of stable home prices during that time. That trend is likely to
continue in 2011” Yun said. “The latest pending sales gain suggests
activity is very close to a sustainable, healthy volume of a mid-5
million total annual home sales.”
Pending home sales in the South jumped 11.5 percent and are 1.7 percent
above December 2009.
Posted: 27 January 2011
Source: Florida Realtors
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