International Breaking News

The Canadian Press - ONLINE EDITION

Measure of US pending home sales rises to highest level in more than 2 1/2 years

By: Christopher S. Rugaber, The Associated Press

Wednesday, Feb. 27, 2013 at 10:20 AM | Comments: 0

In this Saturday, Jan. 5, 2013, photo, a sale pending sign is outside of a house in Mount Lebanon, Pa. A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 � years. The increase suggests sales of previously occupied homes will continue rising in the coming months. (AP Photo/Gene J. Puskar)

WASHINGTON - A measure of the number of Americans who signed contracts to buy homes rose in January from December to the highest level in more than 2 1/2 years. The increase suggests sales of previously occupied homes will continue rising in the coming months.

The National Association of Realtors said Wednesday that its seasonally adjusted index for pending home sales rose 4.5 per cent last month to 105.9. That's the highest since April 2010, when a homebuyer's tax credit was about to expire.

There is generally a one- to two-month lag between a signed contract and a completed sale.

Pending home sales rose in all regions, but just barely ticked up in the West, where a limited supply of available homes is holding back sales.

The increase is the latest positive report for the housing market, which began recovering last year after a deep, six-year slump. Steady hiring and nearly record-low mortgage rates have encouraged more Americans to buy homes. More people are also moving out on their own after living with friends and relatives in the recession. That's driving a big gain in apartment construction and also pushing up rents.

"Housing market activity appears to have ended 2012 on a positive note and is off to a strong start in 2013," Cooper Howes, U.S. economist at Barclays Capital, said in a note to clients.

Sales of previously occupied homes ticked up in January after rising to their highest level in five years in 2012.

And new-home sales jumped 16 per cent last month from December to the highest level since July 2008, the Commerce Department said Tuesday.

Home prices, meanwhile, rose by the most in more than six years in the 12 months ending in December.

Steady price increases are also contributing to the housing recovery. They encourage more people to buy before prices rise further. Higher prices also build homeowners' wealth, which can spur more spending and economic growth.

Builders, meanwhile, started work on the most new homes in 4 1/2 years in December. Last year was the best year for residential construction since 2008, just after the recession started.

Rate this
This article has not yet been rated.

We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

You can also register and/or login to the site and join the conversation by leaving a comment.

Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Comments

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Comment

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.