U.S. pending home sales rebound in October

WASHINGTON, Nov. 29 (Xinhua) -- U.S. pending home sales rebounded strongly in October following three straight months of diminishing activity, the National Association of Realtors (NAR) reported on Wednesday.

The pending home sales index, a forward-looking indicator based on contract signings, rose 3.5 percent to 109.3 in October, the highest reading since June, the NAR said.

Lawrence Yun, NAR chief economist, said pending sales last month were primarily driven higher by a big jump in the South, which saw a nice bounce back after hurricane-related disruptions in September.

However, the supply and affordability headwinds seen most of the year have not abated this fall, according to Yun.

"Existing inventory has decreased every month on an annual basis for 29 consecutive months, and the number of homes for sale at the end of October was the lowest for the month since 1991," he said.

Yun estimated that existing-home sales, which account for about 90 percent of U.S. home sales, would rise to around 5.52 million units this year, 1.3 percent higher than last year. The national median existing-home price was expected to increase around 6 percent this year. Enditem