Pending home sales rose less than expected in May but are still at the highest level since 2006. The National Association of Realtors’ index of pending home sales rose less than expected, by 0.9% to a seasonally-adjusted 112.6. Analysts had expected a 1-1.2% increase.
“The steady pace of solid job creation seen now for over a year has given the housing market a boost this spring,” NAR chief economist Lawrence Yun said.
Last week, the association saw a sharp pickup in existing home sales following a decline in April. Sales of new single-family houses in May 2015 were at a seasonally adjusted annual rate of 546,000, which is up 2.2% from April.
Spring’ season gains are good news for Housing Market. New home sales spiked by nearly 20 percent year-over-year in March up to about 481,000, according to a report from HUD and the U.S. Census Bureau. It was the highest level the market has experienced since 2008.
Existing home sales also jumped in March, by 6.1 percent, the largest monthly increase since December 2010, according to the National Association of Realtors.
The NAR Pending Homes Sales Index increased by 11.1 percent year-over-year in March and has been gaining momentum hitting into its highest level in nearly two years.
Existing homes sales surged to their highest annual rate in 18 months, showing a promising beginning according to the latest report from the National Association of Realtors.
The total number of existing home sales, which are completed transactions that include single-family homes, townhomes, condominiums and co-ops, jumped 6.1% to a seasonally adjusted annual rate of 5.19 million in March from 4.89 million in February, this is the highest annual rate since September 2013 that it was also 5.19 million.
Total housing inventory at the end of March grew as well up to 5.3% to 2 million existing homes available for sale. Unsold inventory is at a 4.6-month supply at the current sales pace, down from 4.7 months in February.
Existing home sales, excluding distressed sales, are the most encouraging stats at the moment. These, according to Trulia and the National Association of Realtors, were 80 percent back to normal in August.
Trulia’s Bubble Watch also showed that prices were 3.4 percent undervalued in the third quarter, which is a marked improvement over the 13.5 percent undervaluation at the worst of the housing bust. That means prices are three-fourths of the way back to normal.
Delinquency and foreclosure rates also were much improved. According to Trulia and Black Knight, the national delinquency and foreclosure rate was 74 percent back to normal in August, the same as one quarter ago and up from 56 percent one year ago. The decline in defaults and foreclosures has helped stabilize the financial system and hard-hit neighborhoods.