by Bill McBride on 11/29/2012 10:16:00 AM
Thursday, November 29, 2012
The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 5.2 percent to 104.8 in October from an upwardly revised 99.6 in September and is 13.2 percent above October 2011 when it was 92.6. The data reflect contracts but not closings.Contract signings usually lead sales by about 45 to 60 days, so this would usually be for closed sales in November and December. However, because of the increase in short sales that take longer to close, some of these contract signings are probably for next year.
Outside of a few spikes during the tax credit period, pending home sales are at the highest level since March 2007 when the index also reached 104.8. On a year-over-year basis, pending home sales have risen for 18 consecutive months.
Posted by Bill McBride on 11/29/2012 10:16:00 AM