National Index of Pending Home Sales Numbers Decline
This Tuesday, the National Association of Realtors released their report of pending home sales statistics for October. According to the index, the numbers posted a .7% decline compared to September’s results, and a 1% decline compared to last year’s October.

Even with the slight decline in home sales activity, analysts commented that the results were actually “remarkably stable…despite the turmoil in the economy”.  Remember, just a few months ago in August, there was a momentary spike in activity as mortgage conditions slightly improved. With speculation of mortgage interest rate deductions, we may just see another spike in home sales activity quite soon.

California, Western Regions, and Select Areas Post Positive Numbers
Despite the decline in overall statistics, a few areas posted positive numbers in this October’s report. The Western Region actually showed a 17.4% improvement compared to the activity levels of last October. Specifically, the association made note of these healthy gains in areas such as California, Las Vegas, and also Florida.

While the numbers may show stability and healthy gains, it’s also important to remember what’s driving these activity levels. In parts of California for example, we’re home to some of the steepest price declines throughout the nation. As a result, it’s no wonder that bargain hunters and investors are coming from every angle to pick up some of these properties throughout California. So while these numbers show positive gains in terms of sales transactions and activity, it’s also worth noting the correlation between these “gains” and the hardest-hit markets in terms of price declines.

The Full Report from the National Association of Realtors can be seen here.

 ”¹The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.”

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