According to the last U.S. pending homes sales report the downward trend in this market has changed direction and there was a sharp increase in pending home sales during October 2011, and the October 2011 U.S. pending home sales index was also well above the October 2010 index.
The U.S. pending home sales index sharply rose by 10.4% in October 2011 compared with the September’s 2011 index, from 84.5 to 93.3. The October 2011 index was also 9.2 percent above the October 2010 index that stood back then at 85.5%.
This index is a forward looking indicator and considers only the contracts signed and not closing.
This index might suggest a change in the direction of the U.S. house sales and a slight reason for cautious optimism in the real estate markets. The recent home sales reports including the new home sales were also positive and showed progress in the sales during October compared with previous month’s sales.
This positive news of a the sharp growth in pending home sales, might be among the factors to trade up the American stock markets and the recent rally of major commodities prices including crude oil prices:
Current Nymex crude oil price, short term futures (December 2011 delivery) is traded up by 1.48%, at $101.27 per barrel as of 17:00*.
Current gold price, short term futures (December 2011 delivery) is traded at $ 1,752 per t oz. a $33.8 decrease or 1.97%, as of 16:52*.
Euros to USD is currently traded up at 1.3455 a 1.0378% increase as of 17:25*.
For more on this subject: