http://finance.yahoo.com/news/pending-home-sales-soar-despite-153051243.html
Contracts to buy existing homes in January rose a strong 4.5% from the previous month, according to the National Association of Realtors, which also revised December’s numbers down. That beats expectations of a 1.8% gain. Volume is now 9.5% above January 2012 and is the highest reading since April 2010.
The existing home market is faced with a lack of supply of homes for sale, as nearly half of home sales last year were of distressed properties.
Banks have been slow to put foreclosed homes up for sale recently, possibly waiting for prices to improve further. Prices are rising fast, up nearly 7% in December from a year ago in the nation’s 20 largest real estate markets, according to the S&P/Case Shiller Index.
Regionally, the Realtors’ Pending Home Sales Index in the West rose 0.1% in January but is 1.5% below a year ago. Supplies of homes for sale are most limited in the West, where investors have been buying distressed properties in bulk. In the Northeast the index edged up 8.2% in January and is 10.5% higher than January 2012. In the Midwest the index increased 4.5% and is 17.7% above a year ago. Pending home sales in the South rose 5.9% and are 11.3% higher January 2012.
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