US pending home sales are up to their highest rates in two years. Pending sales are homes that have accepted a purchase contract and are still in escrow. It is a leading indicator of the home sales numbers for a given peroid.
From the Los Angeles Times article by Tiffany Hsu.
"The measure is up 2% to 97 in January after slipping 1.9% in December. The index of deals for previously owned homes is up 8% compared with the 89.8 level from January 2011.
Last month saw the highest point on the index since April 2010, when consumers drawn by a home-buyer tax credit pushed the figure to 111.3. That was the last time the measure exceeded 100 -– the benchmark for industry health.
The index showed year-over-year increases in every region – a 9.8% hike in the Northeast, a 10.8% rise in the Midwest, a 10.5% boost in the South and a smaller 0.7% uptick in the West.
Contracts are usually signed a month or two before a deal closes and the home purchase is finalized, making the pending-sales index a leading indicator for where the market is headed. The Realtors group said last week that existing home sales in January were up more than 4% to an annual rate of 4.57 million."
From the National Assoc. of REALTORS website announcement and statistics.
“Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery,” Lawrence Yun, the NAR chief economist, said. “If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost, speed up the home-price recovery, and thereby significantly reduce the number of homeowners who are underwater.”
Sell Smart, Buy Wise and Live Well
Norma Toering & Team RE/MAX Palos Verdes Realty
(310) 493-8333
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South Bay Los Angeles cities I sell real estate, property, houses and homes in: Palos Verdes Estates, Rolling Hills, Rolling Hills Estates, Rancho Palos Verdes, San Pedro, Long Beach, Torrance, Lomita, Redondo Beach, Hermosa Beach and Manhattan Beach. Based on information from the Association of REALTORS®/Multiple Listing as of the initial date of this article/blog publication and /or other sources. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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Norma - This is excellent news! I know our sales are up dramatically over last year and, if the trend continues, we will have an incredbile year!
Best to you as well.
Cyndi
I love optimistic news and welcome the announcement of an uptick in sales. I', not too shocked as activity in my little corner of the real estate world picked up the day after Christmas and I'lve been "2007 busy" ever since.
There is some good news on the horizon. I think we are still a long way from fixing this housing problem we are in.