Home Sales Show Signs of Gaining New Steam

The National Association of Realtors reports that its index tracking pending sales of existing homes rose a seasonally adjusted 6.1 percent in May from the previous month to a reading of 103.9. The improvement marks the biggest monthly jump in the index since April 2010. Pending sales are now up month-over-month for three straight months; however, they are still down 5.2 percent in May from a year ago. Home sales are improving, but they got off to such a languid start in the first quarter, according to NAR chief economist Lawrence Yun. He expects 2.8 percent fewer resales this year compared to 2013. “Sales should exceed an annual pace of five million homes in some of the upcoming months behind favorable mortgage rates, more inventory and improved job creation,” says Yun. “However, second-half sales growth won’t be enough to compensate for the sluggish first quarter and will likely fall below last year’s total.” | Read More