Pending home sales rose in November for the fourth time since the summer of 2010! According to the National Association of Realtors (NAR), the 3.5% increase in the number of Americans that signed contracts to buy homes rose in the west and Northeast but dropped in the South and Midwest.

In a yearly comparison the pending home sales dropped 5% in November as this time last year homebuyers were rushing to close before the First Time Homebuyers Tax Credit expired. According to NAR spokesman Walter Molony, nearly 1/3 of the pending home sales were foreclosures or short sales.

Many economists believe that the home prices will continue to drop by another 5-10 percent in the next 6 months before they will begin to stabilize. The record unemployment rate across the nation has been the number one cause for the lack of home sales. Potential homebuyers are either worried about losing their job or are just unable to qualify for a mortgage as the lending standards have tightened.