"We've had a clear turn toward positive momentum in the housing market at the end of 2011"
- Aaron Smith, a senior economist at Moody's Analytics Inc.
U.S. month on month pending home sales decreased 3.5% in December, following a 7.3% increase in November, said the National Association of Realtors on Wednesday.
"We've had a clear turn toward positive momentum in the housing market at the end of 2011," said Aaron Smith, a senior economist at Moody's Analytics Inc. in West Chester, Pennsylvania. "Lower unemployment and higher confidence, coupled with record low mortgage rates, are coalescing to spur increased buying."
"This is potentially negative for January existing home sales although the two do not always go hand in hand," said Jennifer Lee, a senior economist at BMO Capital Markets in Toronto. "So does this mean the story has changed and housing is back in the dumps? Nope."
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