Contracts to Buy Homes Reaches 9-Year High

Every day Real Estate News | Tuesday, June 30, 2015

Pending home deals kept on making gains from a month ago, rising to the highest level since April 2006, as indicated by the National Association of REALTORS®' Pending Home Sales Index, a forward-looking marker taking into account contract signings.

Read all the more: New-Home Sales Climb to 7-Year High

Large picks up in pending home deals in the Northeast and West served to balance a slight decreases in the Midwest and South.

NAR's Pending Home Sales Index climbed 0.9 percent in May to 112.6 in May. The Index is at it's highest level since  April 2006 when it was 113.7.

"The strong pace of strong a job market seen now for more than a year has given the housing market a help this spring," says Lawrence Yun, NAR's chief economist expert. "It's extremely reassuring to now see an expansive based recovery with each of the four major regions areas demonstrating strong additions from a year prior and new home deals likewise waking up."

Yun says the current year's sales are creating home costs to ascend to an "undesirable and unsustainable pace."

"Housing affordability remains a problem that is begging to be addressed with home-cost increasing around four times the pace of wages," says Yun. "Without meaningful gains in new and existing supply, there's no doubt the goalpost will move futher away for some renters wanting to be home owners." 

Here's a more intensive look at how the Pending Home Sales Index performed regionally in May:

•Northeast: rose 6.3 percent to 93.9 last month and is 10.6 percent over a year prior.

•Midwest: fell 0.6 percent to 111.4 however stays 7.8 percent above year back levels.

•South: dropped 0.8 percent to 127.8 however are still 10.6 percent above last May.

•West: rose 2.2 percent to 104.5 in May and are 13 percent over a ye