There are several different monthly reports that track home sales. There’s a report that covers sales of previously owned homes and one that covers new home sales. The National Association of Realtors also tracks pending sales – homes that have a signed contract to buy, but have yet to close. But why track pending sales? Well, they’re a good early indicator of upcoming final sales. In other words, if contract signings are rising, next month’s sales numbers will most likely rise too. That’s why the NAR’s most recent numbers, showing pending sales up for the third straight month, are an encouraging sign that the housing market may have turned a corner. Lawrence Yun, NAR’s chief economist, thinks so. “After nearly a year, the housing sector’s contraction is coming to an end,” Yun said. “Existing-home sales, pending contracts, and new-home construction pending contracts have turned the corner and climbed for the past three months.” Those are all good signs that activity is ramping up as the spring season gets underway. They may also be signs that the market has finally started to stabilize. (source)
