MW: Pending home sales surge 5.1% to a 10-year high in April
A gauge of pending home sales jumped 5.1% in April, rising to the highest since February 2006.
The National Association of Realtors’ pending home sales index hit 116.3 in April, its third straight monthly climb, the group said Thursday. The index is 4.6% higher than it was a year ago. Economists surveyed by MarketWatch had forecast an 0.8% increase for the month.
The index forecasts future sales by tracking real estate transactions in which a contract has been signed, but the deal has not yet closed.
The Midwest was the only regional index to decline in March, but it was still 2.0% higher than year-ago levels. The index for the Northeast rose 1.2%, while the index for the South jumped 6.8%. In the West, the only region to notch a decline in March, sales roared back 11.4%.
The data joins other releases that point to healthy demand in a stabilizing market. New home sales surged 16.6% in April, the Commerce Department said Tuesday.
In a statement, NAR Chief Economist Lawrence Yun noted that buyer demand has been surprisingly resilient despite constrained inventory and higher prices. “Sales have legs for further expansion this summer if housing supply increases enough to give buyers an adequate number of affordable choices during their search,” he added.
