Pending U.S. home sales to recover in 2011

Pending U.S. home sales rose again in November, with the broad trend over the past five months indicating a gradual recovery into 2011, according to the Pending Home Sales Index released today by the National Association of Realtors. The index, a forward-looking indicator, rose 3.5 percent to 92.2 based on contracts signed in November from 89.1 in October. Experts say that historically high housing affordability is boosting sales activity. “In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market,” said Lawrence Yun, NAR’s chief economist. “But further gains are needed to reach normal levels of sales activity.” In the Northeast region, the index increased 1.8 percent to 72.6 in November, but is still 6.2 percent below November 2009. “If we add 2 million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume,” Yun said. TRD