Pending Home Sales Continue to Rise

The Pending Home Sales Index, which is an indicator based on contracts signed in a given month, increased 1 percent and remains 10.9 percent higher than December 2008. 

Lawrence Yun, NAR chief economist, said it’s important to recognize how the tax credit is skewing market data. “There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded,” he said. “These swings are masking the underlying trend, which is a broad improvement over year-ago levels. December activity was the fifth highest monthly tally in two years.”

The index has risen in several different areas.  In the Northeast, the numbers rose 2.3 percent to 76.1 in December.  The Mid-west showed an increase of 5.2 percent to 86.9.  The South rose 2.2 percent to an index of 98.4.