Photo: Justin Ruckman/Flickr
The Pending Home Sale Index, a measure based on contract signings in the US, rose to 112.4 in April, reaching its highest level since May 2006.
According to National Association of Realtors (NAR) data released Thursday, pending home sales increased 3.4 percent between March and April, the fourth monthly increase in a row. But the year-over-year increase was much more dramatic, rising 14 percent for the largest annual boost since September 2012. It was also the eighth consecutive month that measured a yearly increase.
“Realtors are saying foot traffic remains elevated this spring despite limited — and in some cases severe — inventory shortages in many metro areas,” said Lawrence Yun, NAR chief economist.
“Homeowners looking to sell this spring appear to be in the driver’s seat, as there are more buyers competing for a limited number of homes available for sale.”
Pending home sales were up year-over-year in each region of the US in April with the West recording the biggest growth at 16.4 percent. The South followed at 14.8 percent and the Midwest measured a 13.3 percent boost. The Northeast saw the index rise 9.4 percent compared to April 2014.
NAR is forecasting sales of existing homes in the US to reach 5.24 million in 2015, a 6.1 percent increase over last year. Alongside the extra buying activity, the association is anticipating the median price for an existing home will rise 6.7 percent over 2014.