Pending home sales rose again in October, marking the 9th consecutive month this figure has risen according to the National Association of Realtors. The Pending Home Sale Index, which is a forward looking indicator based on the number of contracts signed in October, rose 3.7% in October and is 31.8% higher than the October 2008 figure.
However, pending homes sales may dip in the coming months. The expanded tax credit has only been available for a few weeks and it takes the average Buyer 3 to 5 months to find identify the property they will purchase. Chief NAR economist Lawrence Yun shares this view. There are still many concerns, such as the weak job market and the usual year end decline in pending sales.
Regardless, this is great news and should lead to a self-sustaining market in the middle of 2010. Price should begin to firm then also.