The National Association of Realtors reported Monday that pending home sales in the US rose 0.9 percent in May, as gains in the Northeast and West offset declines in the Midwest and South. Compared to a year earlier, the NAR’s pending home sales index rose a staggering 10.4 percent. The index also reached a new post-recession high, climbing to a reading of 112.6, its highest reading since April 2006. A calculation of the number of contracts signed to purchase homes, the measure of pending sales is considered a solid indicator of what sales will do in the coming months, as closings typically trail contrcat signings by a month or two.
NAR chief economist Lawrence Yun was buoyed by Monday’s report, indicating that sales are now on track for their best year since the Great Recession. “The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring,” Yun noted in a statement. “It’s very encouraging to now see a broad-based recovery with all four major regions showing solid gains from a year ago and new-home sales also coming alive.” The report continues a trend in recent housing reports that appear to show the market is finally nearing a state of health not seen since before the downturn. Just last week, in fact, a Commerce Dept. report showed that new home sales rose 2.2 percent in May to reach another post-recession high.