Pending home sales near a 2-year high February 28, 2012 More Americans are signing contracts to buy existing homes than at any time in nearly two years, according to the National Assn. of Realtors' index of pending home sales. The measure increased 2% in January from December, when it slipped 1.9%. And compared with January 2011, the index rose 8%. The index is based on the number of signed contracts reported to the nationwide Multiple Listing Service and large brokerages. The trade group said that about 80% of signed deals are finalized within two months. In January, the index hit 97, its highest level since April 2010, when consumers were drawn by a home buyer tax credit. At that point the index, as tallied by the association, hit 111.3. It was the last time the measure exceeded 100 - the group's benchmark for industry health. The index for January showed year-over-year increases in every region - a 9.8% hike in the Northeast, a 10.8% rise in the Midwest, a 10.5% boost in the South and a 0.7% uptick in the West. Because contracts are usually signed a month or two before a deal closes, the index is an indicator for where the market is headed. The association said last week that existing home sales in January rose more than 4% to an annualized rate of 4.57 million. Housing experts such as Lawrence Yun, the trade group's chief economist, credit the boost in the sliding unemployment rate - which fell to its lowest point in three years in January - as well as a downward trend in home prices and a supply of homes at a nearly seven-year low. "Movements in the index have been uneven, reflecting the head winds of tight credit," Yun said in a statement, "but job gains, high affordability and rising rents are hopefully pushing the market into what appears to be a sustained housing recovery."