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Pending Home Sales Highest Since 2010

The National Association of Realtors® Pending Home Sales Index reached the highest level seen in two and a half years in November after posting its third consecutive monthly increase.

The November index was 9.8 percent above the index of 96.9 in November 2011.

The PHSI is a forward looking indicator of home sales based on contract signings.

Home sales are typically completed within one to two months of contract signings.

Lawrence Yun, NAR chief economist, said home sales are on a sustained uptrend.

"Even with market frictions related to the mortgage process, home contract activity continues to improve. Home sales are recovering now based solely on fundamental demand and favorable affordability conditions."

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