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
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
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.