The Pending Home Sales Index increased 9.8 percent in November, rising to its highest mark since 2010.
By Peter Ricci
The Pending Home Sales Index showed considerable signs of life in November, increasing 9.8 percent year-over-year and hitting its highest level in more than two years, according to the latest readings by the National Association of Realtors.
Indeed, not since April 2010 has the Pending Home Sales Index been higher, when homebuyers rushed to buy residences ahead of the expiration of the homebuyer tax credit. Excluding the tax credit period, it’s been nearly six years since Pending Home Sales Index was at this level.
Pending Home Sales Index – Good Sign for 2013
Other details from NAR’s report included:
- This is the third straight month of monthly increases, and on a yearly basis, the Pending Home Sales Index has risen for 19 consecutive months.
- On a regional basis, sales were up 15.2 percent year-over-year in the Midwest and 13.9 percent in the South.
- The Pending Home Sales Index measures contract activity, so based on its November findings, NAR is anticipating existing-home sales to increase 8 to 9 percent in 2013, above the 10 percent gain of 2012 over 2011. Additionally, NAR expects existing-home price to rise 4 percent in 2013, after a 7 percent increase in 2012.
All that data leads to one central idea, one we’ve been reporting on with encouraging consistency the last couple of days – there are numerous signs that real estate professionals can look forward to a solid 2013. From continued investment in residential construction, to marked improvement in asking prices, to the best new single-family home sales in more than two years, the signs of the real estate recovery seem to be all around us.
Emilio Palomo, an agent with Riteway Properties in Miami who also chairs the Miami Master Brokers Forum, said that with Miami’s endless appeal to international homebuyers, his office saw strong contract activity in both November and December, and he anticipates a similarly strong 2013.
“We are blessed with all the foreign buyers from South and Central America and a lot of Europeans,” Palomo said. “I do expect a great 2013.”