Pending Home Sales Up - December 2008

From CNNMoney.com - "Pending home sales rise in December":

Plunging home prices and low mortgage rates pushed homebuying activity higher in December, according to a regular industry report released on Tuesday.

The Pending Home Sales Index, from the National Association of Realtors, measures the number of sales contracts signed each month. It rose 6.3% in December to 87.7, after dropping 4% in November to a record low of 82.5.

The index was 2.1% higher than its December 2007 level.

What happened in your local region?

Sales activity gained the most traction the South, where the index jumped 13% in December. The Midwest was also much higher at 12.8%. The Northeast, however, slipped by 1.7% and the index in the West fell 3.7%.

It appears that the significant drop in housing prices coupled with attractive mortgage rates (for those who can qualify for a loan) continue to spur improved home buying activity. We continue to experience this reality ourselves and hear reports from affiliates in different markets that the lower priced portion of the housing market is percolating with activity. In fact, many bank owned properties being dumped on the market at extremely aggressive price points are continuing to generate multiple offers over the asking price.