Once a home seller agrees to a buyer’s offer and the parties sign a contract to buy, that home’s sale is considered pending until it closes weeks later. The National Association of Realtors tracks pending sales because they’re considered a good forward-looking indicator of future home sales numbers. After all, most pending sales lead to final sales. That’s why it’s good news that the latest results of the NAR’s index show pending home sales up 2 percent in October from the month before. Lawrence Yun, NAR’s chief economist, says it’s a sign buyer momentum is gaining. “Home buying momentum is building after nearly two years of suppressed home sales,” Yun said. “Even with mortgage rates modestly rising despite the Federal Reserve’s decision to cut the short-term interbank lending rate in September, continuous job additions and more housing inventory are bringing more consumers to the market.” (source)
