Pending home sales surge in October

The National Association of Realtors just released pending home sales figures for October. Sales surged by a record 10.4% from September, much better than the 1% decline that economists were looking for. Sales were still down 22.4% from a year ago, however. The strength was relatively broad based with a 7.1% gain in the South, a 20% spike in the Northeast, and a 27% surge in the Midwest. Sales dipped 0.4% in the West.

Pending home sales leaped in October, with broad based strength around the country. The latest numbers contrast sharply with the lousy new home sales figures we recently got, suggesting that the used home market continues to capture the imagination of buyers. They're seeking out the best values, and right now, that means distressed used homes at attractive -- even fire sale -- prices. While I don't expect a vigorous recovery in housing, the data continues to point to stabilization. That's a definite step in the right direction.