According to the National Association of Realtors, home sales rose sharply in October and continue to remain above existing levels one year ago.
Based on contract signings, the Pending Homes Sales Index (PHSI) which reflects contracts, but not closings, soared 10.4 percent to 93.3 percent in October 2011. This is 9.2 percent above October 2010's rate.
According to Lawrence Yun, NAR chief economist, realtors hope that record low mortgage rates and increasing home affordability will lead to further growth in the real estate market. Yun reports that homeowners' extremely low default rates, and declines in inventory, point to a recovering housing market.
The Midwest Index reported the greatest jump, 24.1 percent, a marked improvement of 13.2 percent above October 2010. The Northeast rose 17.7 percent, over 3.4 percent above October 2010. The South grew by 8.6 percent which is 9.7 percent above the same time period in 2010. Although the West slipped 0.3 percent in October, it is still 8.1 percent higher than the index a year ago.
It should be noted that the rise in contract signings does not equate to an equivalent rise in contract closings as problems with credit scores in a tight credit market, continue to plague prospective buyers.
Source: Florida Realtors
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