Buyer demand improved at the start of January and helped boost pending home sales to their highest level since August 2013, according to the National Association of Realtors.
The Pending Home Sales Index rose 1.7 percent to 104.2 in January from 102.5 in December. It is now 8.4 percent higher than the 96.1 level recorded in January 2014. This is the fifth back-to-back month of annual gains.
January’s home sales pace hints at the underlying demand that exists in the housing market today, said Lawrence Yun, NAR chief economist, in a statement.
“Contract activity is convincingly up compared to a year ago despite comparable inventory levels,” he said. “The difference this year is the positive factors supporting stronger sales, such as slightly improving credit conditions, more jobs and slower price growth.”
The PHSI increased 0.1 in the Northeast to 84.9 in January, and is now 6.9 percent higher than a year ago. The index decreased in the Midwest by 0.7 percent to 99.3, still 4.2 percent above January 2014.
The South saw the largest increase in pending home sales with a 3.2 percent increase to a score of 121.9 in January 2015. This is 9.7 percent higher than last year. In the West, the index rose 2.2 percent to 96.4 and is 11.4 percent above a year ago.
