National pending home sales hit its cyclical low last April 2011 and since then has been on an upward trend according to a report published by the National Association of Realtors® (NAR). The Pending Home Sales Index is an indicator based on contract signings. According to NAR the Pending Home Sales Index was up by 2% in January of December and 8% higher than January 2011.
The Pending Home Sales Index can be divided into four national regions as follows:
1 - Northeast - Increased by 7.6% in January and up 9.8% over a year ago.
2 - Midwest - Declined of 3.8% but is up by 10.8% compared to January 2011.
3 - South - Increased by 7.7% in January and up 10.5% over a year ago.
4 - West – Declined by 4.4% in January and 0.7% above January 2011.
According to NAR’s chief economist, Lawrence Yun, “Movements in the index have been uneven, reflecting the headwinds of tight credit, but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery”
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