Pending Home Sales Stabilize

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Despite recent economic uncertainty, the pending home sales index for October remained stable, according to the National Association of Realtors.

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in October, slipped 0.7 percent to 88.9 from an upwardly revised reading of 89.5 in September, and is one percent below October 2007 when it was 89.8.

Lawrence Yun, NAR chief economist, said a review of the past year is instructive.

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According to the NAR, conditions remain uneven around the country, but some areas that are showing healthy gains in pending home sales from a year ago include many Florida and California markets, Providence, R.I.; Lansing, Mich.; Oklahoma City; and Las Vegas.

The PHSI in the South jumped 7.8 percent to 95.9 in October but remains 2.9 percent below a year ago. In the Northeast the index rose 0.6 percent to 68.1 but is 14.1 percent below October 2007. The index in the Midwest declined 4.3 percent to 79.7 in October and is 6.8 percent below a year ago. In the West, the index fell 8.7 percent to 103.7 but is 17.4 percent higher than October 2007.

landscapearchitect.com is predicting that by fall of 2009 the country will begin to see solid year over year increases in single-family home starts, permits, and put-in-place dollars.

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landscapearchitect.com is predicting that in 2009, interest rates will stay low, inflation/deflation will counter balance itself into slightly negative territory, housing prices will stabilize and begin to rise, lenders will loosen up and by mid year, we all will see sold signs of growth and progress.

Sources: Landscape Communications, National Association of Realtors