The Western region led the country in pending resales of existing homes in November, up 18% compared to 3.5% nationally. This was the fourth of the last five months to see an increase in the number of sales contracts on existing homes.
Overall it appears that the economy is improving which, coupled with low mortgage interest rates, would normally bode well for the housing market. The fly in the oinment is the unknown inventory of distressed properties (REO's and Short Sales) that will come onto the market in 2011. Yelena Shulyatyeva, an economist at BNP Paribas in New York, said in an e-mail to clients that "Housing demand should continue its uneven recovery entering 2011 as housing oversupply should keep pushing housing prices down."