WASHINGTON (MNI) – The following from the text of the National
Association of Realtors pending home sales report, released Thursday,
December 29:

Pending home sales continued to gain in November and reached the
highest level in 19 months, according to the National Association of
Realtors .

The Pending Home Sales Index, a forward-looking indicator based on
contract signings, increased 7.3 percent to 100.1 in November from an
upwardly revised 93.3 in October and is 5.9 percent above November 2010
when it stood at 94.5. The October upward revision resulted in a 10.4
percent monthly gain.

The last time the index was higher was in April 2010 when it
reached 111.5 as buyers rushed to beat the deadline for the home buyer
tax credit. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said the gains may result
partially from delayed transactions. “Housing affordability conditions
are at a record high and there is a pent-up demand from buyers who’ve
been on the sidelines, but contract failures have been running unusually
high. Some of the increase in pending home sales appears to be from
buyers recommitting after an initial contract ran into problems, often
with the mortgage,” he said.

“November is doing reasonably well in comparison with the past
year. The sustained rise in contract activity suggests that closed
existing-home sales, which are the important final economic impact
figures, should continue to improve in the months ahead,” Yun added.

Pending home sales are not affected by the recently published
rebenchmarking of existing-home sales because the index uses a different
methodology based directly on contract signings, and is adjusted for
seasonality.

The PHSI in the Northeast rose 8.1 percent to 77.1 in November but
is 0.3 percent below November 2010. In the Midwest the index increased
3.3 percent to 91.6 in November and is 9.5 percent above a year ago.
Pending home sales in the South rose 4.3 percent in November to an index
of 103.8 and remain 8.7 percent above November 2010. In the West the
index surged 14.9 percent to 121.2 in November and is 2.9 percent higher
than a year ago.

** Market News International Washington Bureau: 202-371-2121 **

[TOPICS: M$U$$$,MAUDS$]