As prices tick down, the National Associations of Realtors Pending Home Sales Index jumped 10.4 percent from September to October, up 9.2 percent year over year.
Keep in mind, however, that NAR’s Index reflects contracts not closings and the percentage of Realtors reporting a failed contract* nearly doubled last month, from 18 percent in September to 33 percent in October and versus 8 percent in October 2010.
In the West, the Pending Home Sales Index ticked down 0.3 percent from September to October, up 8.1 percent year-over-year.
UPDATE: The language from the National Association of Realtors last month:
Contract failures reported by NAR members jumped to 33 percent in October from 18 percent in September, and were only 8 percent a year ago, so we should be seeing stronger sales.
More accurately stated, however, the number reflects the percentage of Realtors that report having experienced a contract failure, not the percentage of contracts that have actually failed.
∙ Pending Home Sales Jump in October [realtor.org]
∙ S&P/Case-Shiller San Francisco: Prices Fell In September [SocketSite]