While much of this year has proven to be a bust for those of us in the RE industry, recent waves of good news have been emerging. Lately we’ve seen mortgage rates going down, inventory going up and new jobs being created – all signs that an improving market is on its way – and now it would seem that our hopes have come to fruition, as a new study has found that pending home sales have jumped the most since 2010.
According to a study performed by the National Association of Realtors, pending home sales surged more than expected in May, the latest sign a sluggish housing recovery is picking up steam.
Nationwide, signed contracts for previously owned homes jumped 6.1% from April, beating the median forecast of a 1.5% rise and the largest bump we’ve seen in four years!
Additionally, buyers closed deals on 4.9% more previously owned homes in May than April and new home sales jumped 18.6% in May.
“An improvement in sales is likely to continue for at least a few more months, a welcomed reprieve after a significantly slow start to the year,” Sterne Agee chief economist Lindsey Piegza said in a statement. Further gains, Piegza said, will rely on “sustained improvement in income and job creation.
Still, the market isn’t humming like last year. Higher prices and fewer foreclosures have investors and families less likely to strike a deal. Pending sales in May were 5.2% below 2013 levels.
Regardless, this is a change which we can all rejoice.
Have noticed the increase of pending sales in your markets? What are your thoughts?
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