April pending home sales increased 3.4 percent to 112.4 from an upwardly revised 108.7 in March, and is now 14 percent above April 2014 level of 98.6, meaning the Pending Home Sales Index is at its highest level since May 2006, according to the National Association of Realtors.
The year-over-year increase seen in April 2015 is the highest such increase since September 2012, when sales had risen by 15.1 percent.
Despite limited, and in some cases severe, inventory shortages in a number of metro areas, pending home sales activity in April shows that buyer demand is strong and foot traffic is elevated, said Lawrence Yun, NAR chief economist, in a statement.
For homebuyers, that means home prices are up and accelerating in many markets, he added.
Regionally, the Pending Home Sales Index in the Northeast increased 10.1 percent in to 88.3 in April, and is now 9.4 percent above a year ago. In the Midwest, the PHSI rose 5 percent to 113 and is 13.3 percent above April 2014.
Sales in the South increased 2.3 percent to 129.4 in April, 14.8 percent above last year. In the West, the PHSI ticked upward 0.1 percent to 103.8, and is 16.4 percent higher than a year ago.
