Is the Housing Market on the Verge of a Rebound?

More

The foreclosure mess might not be scaring off that many prospective home buyers after all. Pending home sales jumped in October. The National Association of Realtors Pending Home Sales Index increased by an impressive 10.4% during the month. Even with this rise, however, demand remains relatively weak.

Here's the chart:

pending home sales 2010-10.png

After a small tick down in September, pending sales rose steeply in October. In fact, over the period shown in the chart above, there's no monthly increase as great.

Even with this huge bump, however, pending sales still remain below any level between April 2009 and April 2010, when the buyer credit was in effect. But October's data does provide some reason for optimism. Weak sales completed were thought to be caused in part by prospective buyers being scared out of the market by the foreclosure procedure and documentation mess. Yet, the pending sales results indicate that lots of Americans were still willing to enter into new contracts during the month.

If housing is, indeed, beginning to recover somewhat despite foreclosuregate, then this is especially good news for the economy. As noted yesterday, housing was pretty much the only dim spot in an otherwise great month for the U.S. economy in October. Even if demand doesn't approach astronomical levels, a relatively healthy number of sales may be enough to keep the broader economic recovery moving confidently in the right direction.

Jump to comments
Presented by

Daniel Indiviglio was an associate editor at The Atlantic from 2009 through 2011. He is now the Washington, D.C.-based columnist for Reuters Breakingviews. He is also a 2011 Robert Novak Journalism Fellow through the Phillips Foundation. More

Indiviglio has also written for Forbes. Prior to becoming a journalist, he spent several years working as an investment banker and a consultant.
Get Today's Top Stories in Your Inbox (preview)

A Technicolor Time-Lapse of Alaska's Northern Lights

The beauty of aurora borealis, as seen from America's last frontier


Join the Discussion

After you comment, click Post. If you’re not already logged in you will be asked to log in or register. blog comments powered by Disqus

Video

What Do You Wish You Learned in College?

Ivy League academics reveal their undergrad regrets

Video

Famous Movies, Reimagined

From Apocalypse Now to The Lord of the Rings, this clever video puts a new spin on Hollywood's greatest hits.

Video

What Is a City?

Cities are like nothing else on Earth.

Video

CrossFit Versus Yoga: Choose a Side

How a workout becomes a social identity

Video

In Online Dating, Everyone's a Little Bit Racist

The co-founder of OKCupid shares findings from his analysis of millions of users' data.

Writers

Up
Down

More in Business

Just In