Signed contracts also declined in the West, 1.1 percent in October month-to-month and are up just 0.9 percent from a year ago. The West is suffering from a lack of supply, as investors have been scouring the landscape for a decreasing inventory of distressed properties. (Read More: Yes, Housing Starts Surge, but Rentals Are the Drivers)
Pending home sales surged in the Midwest, up 15.6 percent month-to-month and up 20 percent from a year ago. They were also higher in the south by 5.5 percent sequentially and by 17.4 percent from a year ago.
Realtors continue to warn that while this housing recovery seems to be gaining steam, changes to the mortgage interest deduction, as well as other potential hits to the economy from the so-called "fiscal cliff," could derail the momentum. (Read More: Housing Still Precarious in Obama's Second Term)
SECTOR WATCH: Construction & General Building Materials
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