US pending home sales stabilised in December after plunging sharply the month before, reflecting the swings in activity created by government support for the housing market.
The National Association of Realtors said on Tuesday that pending home sales, which reflect deals that have been signed but not completed, edged up by 1 per cent last month compared with the month before, in line with Wall Street expectations. Sales were up 10.9 per cent from the same month a year ago.
In November pending home sales plunged by 16.4 per cent, as buyers pulled back in anticipation of the first-time homebuyer tax credit expiring. It was later extended and expanded to expire in April.
“There are easily understood swings in contract activity as buyers respond to a tax credit that was expiring and was then extended and expanded,†said Lawrence Yun, NAR’s chief economist. “These swings are masking the underlying trend, which is a broad improvement over year-ago levels.â€
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