Pending home sales in November increased 0.8 percent to 104.8 from 104 the previous month, according to the Pending Home Sales Index from the National Association of Realtors. The figure represents a 4.1 percent year-over-year gain, the highest recorded since August 2013.
“The consistent economic growth and steady hiring we’ve seen the second half of this year is giving buyers enough assurance to consider purchasing a home before year’s end,” said Lawrence Yun, NAR chief economist, in a statement. “With rents now rising at a seven-year high, historically low rates and moderating price growth are likely to entice more buyers to enter the market in upcoming months.”
The Pending Home Sales Index, a forward-looking indicator based on contract signings, rose 1.4 percent to 89.1 in the Northeast and is now 7 percent above a year ago. The index in the Midwest decreased 0.4 percent to 100 in November, a decrease of 0.5 percent year-over-year.
In the South, pending home sales increased 1.3 percent to 119.7 on the index, a 5.1 percent gain year-over-year. In the West, the index increased 0.4 percent in November to 98.5, a 4.9 percent gain year-over-year.
Existing-home sales are expected to be around 4.94 million in 2014, a year-over-year decline of 3 percent (5.09 million), but are then projected to increase to 5.3 million in 2015.
Falling gas prices should boost consumer confidence and allow buyers to save additional money for a down payment on a house, Yun said.
