The NAR’s pending home sales index trended down last month, and though it remains above year-ago levels, year-ago levels were especially depressed due to the effects of homebuyer incentives.
Overall, the index declined 4.6% from last month. In the Midwest, the index dropped 6.2%, the sharpest drop of all four regions. Several press reports indicated that the index is above year-ago levels. While true, the pending sales a year ago were especially depressed as buyers rushed in previous months to sign contracts eligible for homebuyer incentives.
A more appropriate comparison than year-over-year would be with January or February 2010, before the rush to sign contracts began. Compared to early 2010, the index is down about 11%.
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