Pending home sales in April hit a 116.3 on the Pending Home Sales Index, the highest level since a 117.4 was reported in February 2006, according to the National Association of Realtors.
April’s PHSI was a 5.1 percent increase from the 110.7 in March and a 4.6 percent increase from the 111.2 in April 2015.
"The ability to sign a contract on a home is slightly exceeding expectations this spring, even with the affordability stresses and inventory squeezes affecting buyers in a number of markets," said Lawrence Yun, NAR chief economist, in a statement. "The building momentum from the over 14 million jobs created since 2010 and the prospect of facing higher rents and mortgage rates down the road appear to be bringing more interested buyers into the market."
Regionally, the PHSI in the Northeast in April rose 1.2 percent to 98.2 in April, a 10.1 percent year-over-year increase. The Midwest reported a 0.6 percent Index decline to 112.9 but is still 2 percent higher than a year ago.
The South’s pending home sales went up 6.8 percent to 133.9 and are 5.1 percent higher than last year. And in the West, the PHSI jumped 11.4 percent to 106.2 and is 2.8 percent up year-over-year.
