Pending home sales in the US rise

New figures have shown that the level of pending home sales in the US rose in October, compared to September.

The National Association of Realtors (NAR) data revealed a 10.6 per cent rise in pending sales for residential properties in the US in October, also putting them 9.2 per cent higher than in the same month in 2010.

Lawrence Yun, NAR chief economist, commented: "We hope this indicates more buyers are taking advantage of the excellent affordability conditions."

He added that further falls in inventory levels are a "healthy sign for the housing market".

The mid-west and north-east of the US experienced the biggest climbs in pending home sales, while the only region to experience a decline was the west, with a month-on-month fall of 0.3 per cent. However, every area of the nation is performing better than it did a year ago.

Some commentators are concerned that there could be a further slide in US property prices, though.

Marc Da-Silva, founder of PropertyJournalist.com and freelance journalist, recently highlighted reports suggesting that banks are preparing to release a large amount of repossessed stock for sale over the next two years.

He pointed out that an influx of new supply could "flood the market" and may push home values lower.
 

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