Pending home sales gained 0.8% to an index reading of 104.8 in November, after a revised 1.2% decrease to 104.0 in October, according to a report released Monday by the National Association of Realtors.
The October decrease was first reported as 1.1% to 104.1.
Economists polled by Thomson Reuters predicted that the index would be up 0.5%
An index of 100 is equal to the average level of contract activity during 2001.
Year-over-year the pending homes sales index increased 4.1% from last November, when the index was 100.7.
Regionally, pending sales were mostly higher. The Northeast saw a 1.4% gain to 89.1, while sales slid 0.4% in the Midwest to 100.0. In the South, sales rose 1.3% to 119.7, and sales climbed 0.4% to 98.5 in the West.
Contracts have held steady despite an economic pickup. "The consistent economic growth and steady hiring we've seen the second half of this year is giving buyers enough assurance to consider purchasing a home before year's end," NAR Chief Economist Lawrence Yun said. "With rents now rising at a seven-year high, historically low rates and moderating price growth are likely to entice more buyers to enter the market in upcoming months."
The drop in gas prices should boost confidence and allow for savings toward a downpayment, he said. "There's still misperception out there that a much higher downpayment is needed, while that's not the reality," adds Yun.
