NAR: Pending Homes Sales Improving

The National Association of Realtors?EUR??,,????'??? Pending Home Sales Index (PHSI) rose in January to 97, a sign the association believes of an improving housing market. The January numbers by region are illustrated.

Pending home sales are on an upward trend and are well above a year ago, according to the National Association of Realtors.

The association?EUR??,,????'???s Pending Home Sales Index, a forward-looking indicator based on contract signings, rose two percent to 97 in January from a downwardly revised 95.1 in December and is eight percent higher than January 2011 when it was 89.8. The data reflects contracts but not closings.

The January index is the highest since April 2010 when it reached 111.3 as buyers were rushing to take advantage of the home buyer tax credit.

Lawrence Yun, NAR chief economist, said this is a hopeful indicator going into the spring home-buying season.

?EUR??,,????'??Given more favorable housing market conditions, the trend in contract activity implies we are on track for a more meaningful sales gain this year,?EUR??,,????'?? he said. ?EUR??,,????'??With a sustained downtrend in unsold inventory, this would bring about a broad price stabilization or even modest national price growth, of course with local variations.?EUR??,,????'??

The PHSI in the Northeast rose 7.6 percent to 78.2 in January and is 9.8 percent above a year ago. In the Midwest the index declined 3.8 percent to 88.1 but is 10.8 percent higher than January 2011. Pending home sales in the South increased 7.7 percent to an index of 109.1 in January and are 10.5 percent above a year ago. In the West the index fell 4.4 percent in January to 101.9 but is 0.7 percent above January 2011.