According to an article published by the National Association of Realtors yesterday pending home sales rose in April for the fourth straight month and reached their highest level in nine years. All four major regions saw increases.
The Pending Home Sales Index, a forward-looking indicator based on contract signings, increased 3.4 percent to 112.4 in April from a slight upward revision of 108.7 in March – a year-to-year 14 percent increase.
The increase in the number of April pending sales is the largest annual increase since September 2012. The index has now increased year-over-year for eight consecutive months, and it's at its highest level since May 2006.
"Realtors are saying foot traffic remains elevated this spring despite limited – and in some cases severe – inventory shortages in many metro areas," says 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. As a result, home prices are up and accelerating in many markets."