DJ Pending US Home Sales Make First Climb Since In 4 Mos
By Jeff Bater
Of DOW JONES NEWSWIRES
WASHINGTON (Dow Jones)--A forecasting tool for home sales posted the biggest climb in more than two years during December, a sign the housing market might be getting better.
The National Association of Realtors' index for pending sales of existing homes increased at a seasonally adjusted annual rate of 4.9% to 112.4 from November's 107.2, the industry group said Thursday.
Its index, based on signed contracts for used homes, was 4.4% below the level of December 2005.
December's 4.9% climb was the largest since 6.9% in March 2004, the NAR said. "Some of the monthly gain may be weather-related, but it appears buyers are becoming more comfortable, sensing the timing is good and that their local market has bottomed out," said David Lereah, NAR's chief economist.
By region, the index showed a 8.1% advance in the Northeast in December from November - and a 4.8% decrease since December 2005. It increased 3.2% in the Midwest - and was down 4.3% in the 12-month span. The South saw a 4.3% rise - and a 4.2% decline in the past year. The index for the West rose by 5.3% - and was 4.9% lower since December 2005.
The NAR's pending home sales index was designed to try measuring which way the housing market is going in the future. It is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction has not closed. Pending sales typically close within one or two months of signing.
Last week, the NAR reported sales of existing homes in the U.S. made the largest tumble in 17 years during 2006, leaving a big pileup in inventory. Existing-home sales decreased by 8.4% to a 6.48 million seasonally adjusted annual rate last year. Inventories climbed by 23.3% in all of 2006. Stockpiles, however, are down from their higher point in July.
-By Jeff Bater, Dow Jones Newswires; 202-862-6616; jeff.bater@dowjones.com
(END) Dow Jones Newswires
02-01-07 1000ET |
