Pending Home Sales Up 3.5% to 89.3 in November

Pending home sales climbed 3.5% to a reading of 92.2 in November from a revised 10.4% jump to 89.3 in October, originally reported as 10.1% increase to 89.1, according to an index released Thursday by the National Association of Realtors.

Economists polled by Thomson Reuters predicted a 2.0% increase for the index.

Year over year, the pending homes sales index was down 5.0% from last November, when the index was 97.0.

Regionally, pending sales were mixed. The Northeast saw a 1.8% increase to 72.6, while sales soared 18.2% to 123.3 in the West. In the South sales dipped 1.8% to 91.4, while in the Midwest, pending sales dropped 4.2% to 78.3.

"In addition to exceptional affordability conditions, steady improvements in the economy are helping bring buyers into the market," NAR chief economist Lawrence Yun said. "But further gains are needed to reach normal levels of sales activity," he said.

"If we add two million jobs as expected in 2011, and mortgage rates rise only moderately, we should see existing-home sales rise to a higher, sustainable volume," Yun said. "Credit remains tight, but if lenders return to more normal, safe underwriting standards for creditworthy buyers, there would be a bigger boost to the housing market and spillover benefits for the broader economy."

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