What is known as the pending home sales index has reported that the amount of contracts signed in December 2006 increased 4.9% to an index rating of 112.4, which up from a rating of 107.2 from November of 2006.
That monthly gain was the highest recorded increase since March of 2004, when the index rating increased 6.9%. Subsequent rating increases have narrowed since July of 2006, when unsold housing inventory levels were at their peak.
Some of the recent gains could be attributed to weather, but another positive sign could be that buyers are becoming more comfortable with entering the market.
Here is what happened regionally with the Pending Home Sales Index:
All regions showed an increase.
Northeast Region: index rating of 89.9, up 8.1%.
Western Region: index rating of 112.2, up 5.3%.
Southern Region: index rating of 129.8, up 4.3%.
Midwest Region: index rating of 103.2, up 3.2%.
What does the index mean?
The Pending Home Sales Index is a leading indicator of the housing sector and is based on the pending sales of homes. A sale is listed as "pending" when a contract is
signed and the selling price is agreed upon and the transaction has not yet closed.
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