Pending home sales up slightly in November

Pending home sales rose slightly in November as the housing market recovery accelerates amid stronger economic growth.

The number of people who signed contracts to buy a home increased 0.8 percent, to 104.8, in November from a downwardly revised 104 in October, he National Association of Realtors (NAR) said on Wednesday.

{mosads}The latest figure is 4.1 percent above November 2013’s numbers and represents the highest year-over-year gain since August 2013.

“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,” said Lawrence Yun, NAR chief economist.

“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,” he said. 

Falling gas prices are expected to further boost consumer confidence and allow prospective buyers the opportunity to save additional money for a down payment.

“There’s still misperception out there that a much higher downpayment is needed, while that’s not the reality,” Yun said.

Contract signings increased in three of four regions last month.  

Pending sales rose in 1.4 percent in the Northeast, 1.3 percent in the South, 0.4 percent in the West and declined 0.4 percent in the Midwest. 

Total existing-homes sales this year are expected to be around 4.94 million, a decline of 3 percent from last year’s 5.09 million, but are forecasted to rise to 5.30 million in 2015.

The national median existing-home price for all of this year will hit around $208,000, up 5.6 percent from 2013, and is likely to moderate to a pace between 4 percent and 5 percent next year. Existing-home prices rose 11.4 percent in 2013.

The Standard & Poor’s/Case-Shiller 20-city home price index on Tuesday showed a 4.5 percent increase in October over the past year, down from 4.8 percent in September.  

Price gains have dropped sharply from a long period of double-digit gains seen during the early part of the recovery.  

Consumer confidence showed increases in two measures released on Tuesday.

The Conference Board said its consumer confidence index climbed to 92.6 in December, up from 91 in November.

Meanwhile, Gallup said confidence in the economy finally crossed back into positive territory for the first time since before December 2007, when the recession started.