Pending home sales 'still up on a year ago'

The number of pending home sales in the US is still substantially higher than it was a year ago, it has been stated.

Data from the National Association of Realtors (Nar) showed that the Pending Home Sales Index of forthcoming transactions dipped in November, with a 16 per cent drop on October's levels.

However, Nar noted, the level was still 15.5 per cent up on a year before and chief economist Lawrence Yun said a short-term drop was only to be expected, as tax incentives for new homebuyers were due to expire before the government decided to extend the scheme.

He added: "The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own."

Mr Yun concluded that the continuation of the tax credit will mean spring should see a new "surge" in sales.

Last month, overseas investment expert Liam Bailey argued in an article for Write About Property that the US will represent the best foreign prospect this year.

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