After several months of decline, pending sales of previously owned home rose in October. Though inventories have tightened and prices continue to rise, consumer confidence remains steady though cautious.
Contracts pending on the sales of previously owned homes in the United States rose slightly in October after having seen a sharp decline in the previous months. Pending sales on previously owned homes rose 0.2 percent in October according to the National Association of Realtors in a statement released on Monday.
Wall Street analysts and economists had predicted that sales for previously owned homes would come in at an increase of around 1.7 percent or so, according to The Wall Street Journal. The information released is based on contracts being signed to show the intention of buying a particular property. Pending home sales tend to take a month or two to complete and be officially done.
Once the sale has been completed, it is tallied into existing home sales which is a more closely monitored figure. Existing home sales accounts for over 90 percent of the entire sales in the real estate industry. Inventory has tightened up around the country but people are still locating the properties they want at the prices they can afford. Many areas of the country have seen a sharp spike in real estate prices due to the tight inventory of homes.
Sales of new and existing homes are a sign taken by economists to mean that the American citizen is showing a reasonable amount of confidence in the current economy. Although employment figures and information remain murky, analysts and the government continue to trumpet the call that American companies have been hiring.
The numbers for furniture sales as well as for home improvement and sales of major appliances have been up of late as these figures combined with home sales tends to be an accurate pulse on how people are feeling about the economy. Many may have rushed to buy before prices, and interest rates, get any higher. Though interest rates have been extremely low, the Federal Reserve is expected to increase its overnight rate which will mean a jump in overall interest rates for the consumer.