Year over year home sales rose sharply in May, marking the first annual increase in sales since April of 2010. The index, issued in a monthly report by the National Association of Realtors (NAR), moved up 13.4 percent from May of 2010, to settle at 88.8. May home sales also rose 8.2 percent from April’s reading of 82.1.
Pending home sales were on the rise in May, which has real estate and industry professionals optimistic for a strong summer selling season.
The Pending Home Sales index, which is based upon homes in contract but not yet closed, is a “forward looking indicator,” and suggests that finalized sales in June and July will be strong. May’s strong activity is one of a series of uneven home sales reports, which have teetered between stabilization and decline since bottoming post-homebuyer tax credit in June 2010.
NAR’s chief economist emphasized the positive reading, pointing out that numbers rose year over year in every national region. However, he also acknowledged that recovery within those regions has been spotty at the local-level, and is highly-dependent upon the state of employment and economic recovery within each market. He also continued to lambaste financial institutions, insisting that housing would actually be experiencing a stronger recovery if financing for buyers were not so stringent.
Pending home sales saw the highest rebound in the foreclosure-riddled West, where sales rose 12.9 percent from May 2010, to 100.6. The Midwest has also experienced strong sales activity, with a 10.5 percent jump year-over-year. The South and Northeast both saw single-digit increases. Percentages used in the readings compare current sales activity to the base line 100 set in 2001.
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