The National Association of Realtors (NAR) released statistics today which show that pending home sales (based on contracts signed in December)increased by 1% from November 2009 to December 2010.
The Pending Home Sales Index rose from 95.6 in November to 96.6 in December 2009, which represents a stablizing market.
Pending Home Sales were 10.9% higher in December 2009 compared with December 2008.
NAR Chief Economist Lawrence Yun said that Americans need to recognize the impact that the federal tax credit has had on the housing market.
"There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring, then extended and expanded," said Yun. "These swings are masking the underlying trend, which is a broad improvement over year-ago levels."
Yun says that December pending home sales activity was the fifth highest monthly tally in two years.
Yun predicts existing home sales to rise to 5.6 million in 2010. Last year there were 5.16 million existing home sales.
The Pending Home Sales Index rose in the Northeast by 2.3% from November to December and by 14.9% compared with December 2008.
In the Midwest pending home sales increased by 5.2% compared with November 2009 and by 8.7% compared with December 2008.
Pending home sales rose in the South by 2.2% from November to December 2009, and by 5.5% compared with the previous year.
Pending Home Sales dropped in the West by 3.8% from November to December, but the index is still 18.6% higher than in December 2008.
Written by Michele Lerner
HULIQ.com
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