The National Association of REALTORS released it’s Pending Home Sales Index for January today showing an increase of 2.0 percent in the index from the month before (seasonally adjusted), and an 8.0 percent increase from a year ago. This marks the highest level the pending home sales index has been at since April 2010 when it hit 111.3 as a result of buyers racing to buy before the homebuyer tax credit expired.
Highlights from the report for January, 2012:
- The pending home sales index (seasonally adjusted) was 97.0 (the index is based upon 100.0 being equal to the average level of sales activity in 2001 which we could call the last “normal” year) which is a 2.0 percent increase from the month before and an 8.0 percent increase from a year ago.
- The”not-seasonally adjusted” index index was 78.2, a 22.6 percent increase from the month before and a 10.3 percent increase from a year ago.
- Two regions, the Northeast and South, had month over month increases and all four regions had year over year increases in home sales activity.
Lawrence Yun, NAR chief economist, said “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. If and when credit availability conditions return to normal, home sales will likely get a 15 percent boost, speed up the home-price recovery, and thereby significantly reduce the number of homeowners who are underwater.”
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