Pending Home Sales Tick Higher
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The number of contracts to buy homes in the U.S. that were previously owned increased slightly in December after taking a plummeting a record amount in the previous month.
The National Association of Realtors' index showed Tuesday that pending home sales increased by 1.0 percent to 96.6 from the revised number in November of 95.6. This was in-line with economists expectations.
The marginal increase last month came on the heels of a 16.7 percent drop in the month prior as the tax credit provided by the government was set to run out on November 30. The program has since been extended until April 30, and economists worry about the potential drop off in home sales in the months that follow.
November was the single month out of the last 10 to see the pending home sales index fall.
The tax credit will award $8,000 to first-time home buyers and was recently amended to give $6,500 to current home buyers that have lived in their home at least five years.
"These swings are masking the underlying trend, which is a broad improvement over year-ago levels," said the Realtor's group chief economist, Lawrence Yun.
The housing industry will continue to struggle with the recovery, as unemployment stays high amid high foreclosure levels and tight lending standards.
The National Association of Realtors' index showed Tuesday that pending home sales increased by 1.0 percent to 96.6 from the revised number in November of 95.6. This was in-line with economists expectations.
The marginal increase last month came on the heels of a 16.7 percent drop in the month prior as the tax credit provided by the government was set to run out on November 30. The program has since been extended until April 30, and economists worry about the potential drop off in home sales in the months that follow.
November was the single month out of the last 10 to see the pending home sales index fall.
The tax credit will award $8,000 to first-time home buyers and was recently amended to give $6,500 to current home buyers that have lived in their home at least five years.
"These swings are masking the underlying trend, which is a broad improvement over year-ago levels," said the Realtor's group chief economist, Lawrence Yun.
The housing industry will continue to struggle with the recovery, as unemployment stays high amid high foreclosure levels and tight lending standards.
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