NAR: Pending Home Sales Index Rise 1.7% to 104.2 in January

Pending home sales increased 1.7% to an index reading of 104.2 in January, after a revised 1.5% decrease to 102.5 in December, according to a report released Friday by the National Association of Realtors.

The index is at its highest level since August 2013.

The December decrease was first reported as 3.7% to 100.7.

Economists polled by Thomson Reuters predicted that the index would be up 1.8%

An index of 100 is equal to the average level of contract activity during 2001.

Year-over-year the pending homes sales index increased 8.4% from last January, when the index was 96.1.

Regionally, pending sales were mostly higher. The Northeast saw a 0.1% gain to 84.9, while sales slid 0.7% in the Midwest to 99.3. In the South, sales rose 3.2% to 121.9, and sales increased 2.2% to 96.4 in the West.

 "Contract activity is convincingly up compared to a year ago despite comparable inventory levels," NAR Chief Economist Lawrence Yun said. "The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth."

A pick-up is expected. "All indications point to modest sales gains as we head into the spring buying season. However, the pace will greatly depend on how much upward pressure the impact of low inventory will have on home prices. Appreciation anywhere near double-digits isn't healthy or sustainable in the current economic environment," adds Yun.

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