Pending home sales on record streak

The nine-month streak is the longest upward trend since the data was first compiled in 2001, an indication of the depth of the slump that preceded it, NAR Chief Economist Lawrence Yun said in a statement.

"Keep in mind that housing had been under-performing for most of the past year," he said.

The Pending Home Sales Index, based on contracts signed in the month, rose 3.7 percent from 110 to 114.1, NAR said.

The index leaped 19.9 percent in the Northeast to 44.2 percent above October 2008. In the Midwest, the index rose 11.6 percent, 36.6 percent above a year ago.

The index gained 11.2 percent in the West and 5.4 percent in the South.
Yun said the index was due for a fall as the expanded tax credit for first-time home buyers may have caught consumers unaware.

The tax credit had been scheduled to end November 30, pushing many to rush to buy before it was extended.

"We could see a temporary decline in closed existing-home sales from December until early spring when we get another surge," Yun said.

Copyright 2009 by United Press International.