The National Association of REALTORS® (NAR) released the Pending Home Sales Report that tracks historically the healthy level of the real estate market, indicated at 100 with a gold line. Prior to the bubble burst, the housing market had been selling far above that level, and after the crash, pending home sales decreased drastically.
Many Americans began to have stronger faith in the housing market between Nov. 2011-Nov. 2012 compared with Nov. 2010-Nov. 2011. The true lows in the housing bust can be seen above in April and September 2011, two months that are seasonally high-traffic months for selling homes. As the economy fared better overall throughout late 2011 and early 2012, the market began to see spikes of activity above this historically healthy level. Starting in March 2012, the market volleyed above and below the healthy level throughout the summer and early autumn until steadily increasing during October and November 2012. Pending home sales in October and November show this large spike in activity, accelerating more than five points above the historically healthy level. This growth is a trend that will likely continue throughout 2013 as the housing markets improve and more reluctant sellers begin to embrace the idea of selling.