The National Association of Realtors (NAR) Wednesday morning released its data on pending sales of existing homes in November. The pending home sales index rose 0.8% from a downwardly revised index reading of 104.0 in October. That November reading of 104.8 is 4.1% higher than in November 2013, when the index reading was 100.7. The consensus estimate called for a month-over-month increase of 0.5% in pending sales. The index reflects signed contracts, not sales closings. An index reading of 100 equals the average level of contract signings during 2001.

The month-over-month gain is the highest since August 2013, when the index rose 5.6%. The NAR’s chief economist noted:

The consistent economic growth and steady hiring we’ve seen the second half of this year is giving buyers enough assurance to consider purchasing a home before year’s end. With rents now rising at a seven-year high, historically low rates and moderating price growth are likely to entice more buyers to enter the market in upcoming months.

Pending home sales in the Northeast United States increased 1.4% in November, posting an index reading of 119.7, up 7% from November 2013. The index fell 0.4% in the Midwest and is 0.5% below last year’s reading. Pending sales rose 1.3% in the South and are 5.1% higher than a year ago. Sales also increased in the West by 0.4% to a score of 98.5, up 4.9% over year-ago sales.

ALSO READ: Home Sales to Increase 9% in 2015

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