Tuesday, January 3, 2012 / by Nathan Clark
The National Association of Realtors reports that pending home sales – signed agreements, not closed transactions – rose 7.3 percent in November from October and were 5.9 percent higher than November of last year.
Pending home sales are a forward-looking indicator, but the figures aren’t what they used to be, as more transactions fall through before closing than in years past. Problems with financing or appraisals, the NAR said, lead to cancelled deals. In fact, the NAR suggests, some of the increase in pending sales might be attributed to buyers recommitting to purchases after having previous deals fall apart.
Still, the pending sales data at least point to a continuing climb in existing home sales nationwide.