Pending Home Sales At Nine-Year High in April

Washington, DC, May 29, 2015—Pending home sales rose in April for the fourth straight month and reached their highest level in nine years, according to the National Association of Realtors.

Led by the Northeast and Midwest, all four major regions saw increases in April.

The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 3.4% to 112.4 in April from a slight upward revision of 108.7 in March and is now 14.0% above April 2014 (98.6) — the largest annual increase since September 2012 (15.1%).

The index has now increased year-over-year for eight consecutive months and is at its highest level since May 2006 (112.5).

Following April's decline in existing-home sales, Lawrence Yun, NAR chief economist, expects a rebound heading into the summer, but the likelihood of meaningful gains will depend on a much-needed boost in inventory and evidence of moderating price growth now that interest rates have started to rise.