Pending Home Sales Rise in South Florida - October 5, 2010

Miami Herald Staff and Wire Report

The number of people who signed contracts to buy homes in South Florida rose in September compared to last year, according to data released Monday by the Miami Association of Realtors.

In Miami-Dade County, pending home sales were up to 10,219 in September. That's an increase of 28.6 percent compared to the same month a year ago, and an increase of 1 percent from August. In Broward, 7,719 pending sales reflected a year-over-year increase of 7 percent, but a decrease of 1.6 percent from the previous month.

Nationwide, pending home sales also grew, but remained far below last year's pace. The weak economy and fears that prices will fall are keeping many consumers away from the housing market.

The National Association of Realtors said Monday that its seasonally adjusted index of sales agreements for previously occupied homes in August -- the most recent month available nationally -- rose 4.3 percent to a reading of 82.3. That's still more than 20 percent below the pace in the same month a year earlier.

Economists surveyed by Thomson Reuters had expected the index would rise to 81.4.

The index provides an early measurement of sales activity because there is usually a one- to two-month lag between a sales contract and a completed deal.

A reading of 100 indicates the average level of sales activity in 2001, when the index started. The reading was above that threshold from March 2003 through April 2007. It sank during the recession, only to surge above 100 a year ago when the government first offered tax incentives to spur sales. When the credits expired in April, the index sank.

"With underlying economic conditions still so weak, a robust housing recovery remains highly unlikely," Paul Dales, U.S. economist with Capital Economics, wrote in a research note.

High unemployment, weak job growth and tight credit have hurt the housing market, despite the lowest mortgage rates in decades.

Miami Herald business writer Toluse Olorunnipa contributed to this report, which was supplemented with information from The Associated Press.


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