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Pending home sales jump to nine-year high

May 28, 2015, 19:30 IST

The pending home sales index rose more than expected and climbed to the highest level in nine years in April.

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According to the National Association of Realtors, sales rose 3.4% month-over-month, and 13.4% year-over-year.

The index climbed to 112.4, the highest level since May 2006.

Economists had forecast that sales, based on contracts for previously owned homes, rose 0.9% month-over-month, and 10.9% year-over-year, according to Bloomberg.

In March, pending home sales crushed expectations, rising 1.1% from the previous month, and 13.4% year-over-year.

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NAR chief economist Lawrence Yun wrote in the release: "Realtors are saying foot traffic remains elevated this spring despite limited - and in some cases severe - inventory shortages in many metro areas," he said. "Homeowners looking to sell this spring appear to be in the driver's seat, as there are more buyers competing for a limited number of homes available for sale."

More to come ...

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