NAR: Pending home sales improve on yearly basis
Posted on Tuesday, December 2, 2014 at 9:31:09 AM
Over the past several months, residential financing rates, job growth and the economy have all improved from a consumer perspective. As a result, there have been a number of gains in the housing market, including pending home sales.
According to the National Association of Realtors, the number of pending home sales rose above year-ago levels in October, up 2.2 percent. However, it declined slightly compared to September, down 1.1 percent. Pending homes are based on contract signings, demonstrating the likelihood of a completed sale in the near future.
"In addition to low interest rates, buyers entering the market this autumn are being lured by the increase in homes for sale and less competition from investors paying in cash," explained Lawrence Yun, NAR chief economist. "Demand is holding steady but would be more robust if it weren't for lagging wage growth and tight credit conditions that continue to hamper those individuals looking for relief from rising rents."
In addition to the changes to pending home sales, home prices have also shifted across the country. According to the S&P Dow Jones Indices, the increases have slowed down over the past several months. The strongest region was the Southeast, while the Northeast saw its first negative home price returns since the end of 2013.