The Cascade Team Blog

Pending home sales are on the rise as is visible by the lack of housing inventory in both the Greater Phoenix and San Diego markets.  The National Association of Realtors is reporting strong month over month and year over year increases in pending home sales.  This will definitely make it more challenging for buyers and for real estate agents who have buyers in these markets.  Knowing as soon as poosible when new home inventory hits the market will be key to getting in on a purchase before it gets snapped up by someone else.

Pending sales of existing homes were up 5.2 percent from September to October and 13.2 percent from a year ago, according to an index maintained by the National Association of Realtors.

NAR's Pending Home Sales Index, which represents existing-home contracts signed  but not yet closed, rose to 104.8 in October -- the highest sustained level in five years. In April 2010, when the federal homebuyer tax credit was still in place, the index hit 111.3, but soon dipped back down. 

An index score of 100 is equal to the average level of sales contract activity in 2001, a robust year for home sales and the first year examined by the trade group. Contracts signed in October typically close one or two months later.

The 13.2 percent year-over-year jump for the index in October marks the 18th consecutive month of annual increases -- a sign of sustained growth.

"We've had very good housing affordability conditions for quite some time, but we're seeing more impact now from steady job creation, and rising consumer confidence about home buying now that home prices have clearly turned positive," said NAR Chief Economist Lawrence Yun in a statement.

All regions saw double-digit annual gains in October but the West, where Yun said limited inventory "is keeping a lid on the market." In the West, the pending home sales index dipped 1.1 percent from September to October, but were still up 0.9 percent from a year ago.... READ MORE

By Inman News | Inman News – Wed, Nov 28, 2012 7:00 PM EST