Pending home sales rebounded in November, rising 0.8% after October’s 1.1% decline.
Expectations were for the report to show pending home sales rose 0.5%.
Compared to a year ago, pending home sales rose 4.1%, beating expectations for a 3.6% increase.
In October, pending home sales rose 2.2% year-on-year.
Following the report, Lawrence Yun, chief economist at the National Association of Realtors, says signed contracts inched forward in November and have been fairly stable but haven’t broken out even as the economy picked up steam this spring.
“The consistent economic growth and steady hiring we’ve seen the second half of this year is giving buyers enough assurance to consider purchasing a home before year’s end,” Yun said.
“With rents now rising at a seven-year high, historically low rates and moderating price growth are likely to entice more buyers to enter the market in upcoming months.”
Yun added that the decline in gas prices is likely to boost consumer confidence and allow prospective buyers to save additional money for a downpayment.