"Housing is building some momentum"
- Ryan Sweet, a senior economist at Moody's Analytics Inc.
Pending home sales in the world's largest economy rose for a third consecutive month in November, a sign nation's property market is on the path to recovery. According to the National Association of Realtors, a measure of Americans who signed contracts to buy homes jumped 1.7% to 106.4, reaching the highest level since April 2010, after a revised 5% gain in the prior month. At the same time, pending sales were up 9.8% from November 2011. Due to the record low borrowing costs and stable prices, the housing market has turned the corner after a dramatic collapse.
"Housing is building some momentum," Ryan Sweet, a senior economist at Moody's Analytics Inc. in West Chester, Pennsylvania, said before the report. "Prices are starting to tick up, mortgage rates are still rock-bottom and the job market has shown some signs of improvement."
"New demand is now being created due to increased urgency to take advantage of incredible affordability as prices are now on the rise," KB Home Chief Executive Officer Jeff Mezger said on a Dec. 20 earnings call. "While it's been a few years in the making, housing is becoming a bright spot for the economy and the industry is once again positioned to play its historical role of being a job creator and leading the national economy into a full recovery."
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