The National Association of Realtors’ Pending Home Sales Index measures the number of contracts to buy homes signed each month. Because most signed contracts lead to final sales weeks later, the index is considered a good forward-looking indicator of existing-home sales numbers. In other words, if pending sales rise in one month, final sales are likely to increase the following month. According to the NAR’s most recent results, contract signings were up 1.9 percent in October from the month before and are now just 0.4 percent below year-before levels. Lawrence Yun, NAR’s chief economist, says Midwestern buyers led the increase, but buyers everywhere could benefit this winter. “The Midwest shined above other regions due to better affordability, while contract signings retreated in the more expensive West region,” Yun said. “Days on the market typically lengthen from November through February, providing better negotiating power to buyers during the holiday season.” (source)
