A leading indicator of future home sales jumped 7.3% in the month of
November to its highest level in over 19 months, according to the
National Association of Realtors.
The 7.3% increase in sales contracts signed in November comes on
the heels of a 10.5% spike in the October pending sales index.
"The sustained rise in contract activity suggests that closed existing
home sales should continue to improve in the months ahead," NAR
chief economist Lawrence Yun said Thursday morning.
The Realtors’ pending sales index is based in signed contracts. But
it doesn't always translate into actual sales that are slated to close
in a month or two.
During the summer this follow-through was disrupted by unusually
high contract cancellations due to appraisal and mortgage issues.
But actual sales have been rising in recent months.
"Some of the increase in pending home sales appears to be from
buyers recommitting after an initial contract ran into problems,"
Yun said.
NAR economists are forecasting existing home sales will total 4.45
million in 2012, up 4.7% from 4.25 million this year.
