Pending Home Sales on the Rise?

Is this truly a good sign or just a diversion from what’s really going on? It’s good news, and for now I think we have to take what we can get. The National Association of Realtors reported last week that pending home sales have actually risen 5.2% over last month’s numbers. This number reflects contracts, not closings. Many think this increase represents an end to the post-tax credit lull in home sales. Pending sales are up in every part of the country. The Northeast saw an increase of 6.3%; the Midwest’s index rose 4.1%; the South posted a 1.2% gain; and the West was the big leader, with an 11.6% increase. Even though this is good news, the economic climate is not strong enough to indicate a recovery. It’s still going to be a waiting game, and sometimes a painful one, at that.

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