Pending Home Sales Up Sharply Over 2011

Washington, DC, May 30, 2012 -- Pending home sales retrenched in April following three consecutive monthly gains, but are notably higher than a year ago, according to the National Association of Realtors.

The Pending Home Sales Index declined 5.5% to 95.5 from a downwardly revised 101.1 in March but is 14.4% above April 2011 when it was 83.5. The data reflects contracts but not closings.

Lawrence Yun, NAR chief economist, said a one-month setback in light of many months of gains does not change the fundamentally improving housing market conditions.

"Home contract activity has been above year-ago levels now for 12 consecutive months. The housing recovery momentum continues," he said.

Yun notes home sales are staying well above the levels seen from 2008 through 2011.

"Housing market activity has clearly broken out at notably higher levels and is on track to see the best performance since 2007," he said.

"All of the major housing market indicators are expected to trend gradually up, but a new federal budget must be passed before the end of the year for the economy to continue to move forward."