Pending home sales rise in November | Irvine Real Estate | Irviine Homes for Sale

by Robert Mack on December 30, 2010

in Buyers, Latest News, Sellers

Pending home sales rose again in November, part of a broad trend in recent months that could point to a gradual recovery in 2011, the National Association of Realtors’ chief economist said.

NAR’s Pending Home Sales Index rose 3.5 percent from October to November, but remained 5 percent below its level a year ago. That compares with a 20.7 percent year-over-year drop in October.

The index is a forward-looking indicator, reflecting contracts rather than closings, which normally occur one or two months later. An index score of 100 is the average level of contract activity in 2001, the first year that index data was collected.

The index fell sharply in May after the expiration of the federal homebuyer tax credits on April 30, from 110.9 to 77.7. Since then, the index has risen on a monthly basis four out of the past six months, hitting 92.2 in November.

“In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” Lawrence Yun, NAR’s chief economist, said in a statement. “But further gains are needed to reach normal levels of sales activity.”

The West saw the biggest month-to-month index jump in November, 18.2 percent, to 123.3. The region was also the only one to see a year-over-year bump, 0.4 percent.

Posted on Irvine Orange County Real Estate Market News

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